![]() After several years, their portfolio consists of four rental properties occupied by stable long-term tenants. ![]() For example, a couple, Frank and Susan, decide to invest in several rental properties as means of early retirement. A lien may also be specific and apply to only one particular asset, or general, meaning that it attaches to all assets owned by the person with the debt obligation.Īn involuntary general lien may be filed against a landlord by various parties for a variety of reasons. Liens can be voluntary, like a mortgage, or involuntary, like a tax lien. State tax liens are among the few exceptions to first in time these jump to the head of the line regardless of when they were recorded.A lien is a claim attached to an asset (like personal property or real property) demonstrating another party is owed money. The IRS, however, has 120 days to redeem the property, meaning that it can pay the purchase price of the house and pay out the first mortgage to preserve its claim. The first mortgage holder can foreclose on the property and wipe out the IRS lien. For example, if a property has a first mortgage for $150,000 recorded in January 2009 and an IRS tax lien for $45,000 recorded in October 2011, the first mortgage lien is superior to the tax lien. This ranking also applies to IRS tax liens. ![]() This is called the "first in time is the first in line" doctrine. Most liens are ranked based on the date the lien is recorded. ![]() To determine what happens to each of these encumbrances when a house is foreclosed upon or sold, each is assigned a priority as to when it must be paid in relation to other liens. ![]() A property may end up with several mortgages and liens against it over time. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |