Federal Tax Lien Priority: Over Your Mortgage?

Federal Tax Lien Priority: Over Your Mortgage?

by: Anthony Parent

Yesterday, a customer asked us if there have been a situation for which a Federal Tax Lien concern would ever be more than a mortgage that is existing. We thought it was a great opportunity to discuss federal tax liens and how they work in relation to previously recorded liens and mortgages while we believed that as a matter of public policy that the Federal Tax Lien priority never would.

1. So How Exactly Does Federal Tax Lien Priority Work?

A concern lien, after costs and home fees, are liens which have ‘priority under federal law’, such as for instance mortgages along with other asset that is secured.

Possibly that does not assist much, so think about liens a a deck of cards. The Ace could be the greatest. That could be very first home loan. In the event that you have 2nd home loan, that 2nd home loan is the https://www.speedyloan.net/personal-loans-wa/ King. In the event that IRS filed a tax that is federal, that could be the Queen. Then assume a hospital filed a judgment lien — that might be a Jack.

2. Why do lenders worry about priority? weiterlesen →