Welcome to Mortgage Foreclosure Guide
Mortgage Foreclosure Mi Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
from: Extinguish Tax Lien for a Foreclosure on a First MortgageA mortgage foreclosure can be a very complicated matter for the lender, the borrower and any other parties that may be involved. In a simple mortgage foreclosure, the other parties involved will be the lender and the borrower. The lender is usually a bank or other financial institution.
In some situations, there may be a tax lien on the property. The tax lien may be from the IRS for money owed the government, a state tax lien for fines and fees owed or a county lien for delinquent property taxes. In situations like this, the question regarding the ability to extinguish a tax lien by foreclosure on a first mortgage has always risen.
In certain states the law varies regarding the right to extinguish tax liens with foreclosure on a first mortgage. These laws may be affected by the type of foreclosure sale it is. It is also depends on the type of tax lien that’s on the property. There are certain circumstances where the lender can extinguish tax liens with foreclosures on a first mortgage.
This is particularly true with tax liens from the county or state. Liens by the Internal Revenue Service may or may not be extinguished depending on certain situations, mostly what type of notice they are given regarding the impending foreclosure.
In most states, a mortgage is a lien that takes precedence over any other liens that may be put on the place. But, this does not mean that it can extinguish tax liens. Foreclosures of first mortgage must take place in a legal manner, by proper notification to the other lien holders.
Banks cannot automatically extinguish tax lien with foreclosure of first mortgage if there are ad valorem liens, federal tax liens or Uniform Commercial Code financial statements against the property. For instance, in the state of Alabama, the IRS requires at least 25 days notice of a mortgage foreclosure if they have a lien on the property.
In this case of the tax liens being extinguished, the IRS continues to have the right to redeem the property within 120 days of the sale date if the bank extinguished the tax liens. They also can maintain their tax liens on any excess of the proceeds after the bank gets what’s owed to them.
There have been cases that have been taken into court to battle the question of extinguished tax lien with foreclosure first mortgage sales. This often also happens in the case of delinquent property taxes where parcels of land are sold at bid, yet the lender still holds the title to the property.
Always check your state laws to be sure of the laws regarding mortgage foreclosures and junior liens.
Mortgage Foreclosure Mi News
US Mortgage Foreclosures grow by 6% in February - TopNews
 Washington Post | US Mortgage Foreclosures grow by 6% in February TopNews Arizona and Florida are the next in the list with one of every 163 housing units was subject to a foreclosure filing. California and Michigan were reported ... Feb. foreclosure filings at year-over-year low February Mortgage Default Notices Have Increased By 3 Percent Foreclosure Programs: Sugar Coating the Evidence of Continued Housing Troubles |
One in Three Michigan Mortgages Underwater - HULIQ
One in Three Michigan Mortgages Underwater HULIQ Michigan's "Underwater" mortgage rate is currently fourth highest in the nation. Underwater mortgages will only increase the number of foreclosures in due ... The Second Mortgage |
Helping upside-down home owners stave off foreclosure - Detroit Free Press
 PR Web (press release) | Helping upside-down home owners stave off foreclosure Detroit Free Press Home foreclosures -- those already in progress and the tens of thousands of new filings economists anticipate this year -- threaten to undermine Michigan's ... Can't make your mortgage? Get an emergency loan |
Briefings - The Ledger
Briefings The Ledger WASHINGTON ]Foreclosure Rates Ease RealtyTrac Inc. said Thursday that the number of US households facing foreclosure in February grew 6 percent from a year ... |
Foreclosure notices sent drops in Ill. - KMOX.com
Foreclosure notices sent drops in Ill. KMOX.com Illinois ranks fourth in the country in total foreclosurer notices according to the data company behind California, Florida and Michigan. Illinois Foreclosures Fall in February From January |
Solutions aren't easy for underwater mortgages - Detroit Free Press
Solutions aren't easy for underwater mortgages Detroit Free Press Inventory of homes on the market is down by 30% and banks are holding on to about 10000 Michigan foreclosures, he said. It is unclear when those homes would ... Michigan Hit Hard with Mortgage Defaults Solutions aren't easy for underwater mortgages Owners walk from homes, values erode |
Obama unveils mortgage plan to help California, 4 other states - Los Angeles Times
 New York Times (blog) | Obama unveils mortgage plan to help California, 4 other states Los Angeles Times Standing in the heart of the nation's hard-hit foreclosure country, President Obama on Friday rolled out a $1.5-billion mortgage program meant for a handful ... Obama aid package to help with home foreclosures Obama Announces 'Modest' Foreclosure-Prevention Initiative President Obama Announces Aid for Struggling States |