Do i have to pay irs and mass liens if I buy a house at foreclosure that has liens on the deed?

I am interested in buying ahouse at a foreclosure sale but the deed shows a ,000 IRS lien and a ,000 Massachusetts lien as well as a town lien for back taxes. Since the liens are against the person who didnt pay his mortgage and is being foreclosed, if I were the next buyer would I have to pay them?

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4 thoughts on “Do i have to pay irs and mass liens if I buy a house at foreclosure that has liens on the deed?”

  1. Federal, State and Local tax liens are superior liens to any mortgage liens. The liens would have to be paid. You did the right thing by researching the property a bit. Some buyers go in "sight unseen" and only find out after the auction that they’ve bought a lemon. Goood luck.

  2. I think the answer is YES. You might check with the trustee selling the house if the other liens are getting wiped out, but I believe that IRS liens don’t.

  3. Any federal or state tax liens, you will have to pay for…..But second mortgages, or other liens, will be wiped out during the forclosure process…..

  4. What kind of foreclosure sale is it? Is it held by the bank or the local government? If it is the local government like the state or the county, the sale is occuring because of those liens. Once the sale is completed, those liens are extinguished.

    The federal/IRS liens are another matter. They have 120 days before they can claim against your newly bought house. So if you buy the house, don’t do anything for the next 120 days to improve on it. The IRS will pay you back if they claim it but they won’t pay for extra improvements.

    Foreclosure investing is an extremely fun, and profitable investment venue but has several pitfalls like what I just said above. I recommend buying a book on it before you proceed in doing this so you can learn more about foreclosures and liens.

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