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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Post-sale consequence of missed notification to a lien of record... Posted by Ward-CA- on October 15, 2003 at 10:47 PM In Reply to: fed. tax liens & trustee sales. posted by bob on October 15, 2003 at 10:18 PM : To any party with expertise in trustee sale procedures. : What happens if the IRS is not notified by the trustee prior to a trustee sale of a property in which a federal tax lien is present or where the owner of the property has an outstanding federal tax lien. Does the redemption period still apply or is there no redemption period as the lien will not be wiped off due to non notification. How can a potential bidder confirm prior to a sale that the trustee has made the statutory notifications to the IRS. : *Second question. : Often times a property is transferred multiple times prior to a scheduled trustee sale in an attempt to delay sale. Often these parties file BK to delay sale. Do each of these parties that have owned the property or a interest in the property have to be checked for the presence of fed. tax liens. Note that many parties may own an interest in the property at the time of sale as their game is often to transfer partial interest to different parties every 30 days or so. What is the best way to check if the property is clear of any problematic fed. tax liens prior to the sale. Thank you. -=-=-=-=-=-=-=-=-=-=-=-=-=-=- Bob, Answer to First Question: If any junior lienor is not notified by the trustee, as required, of the impending foreclosure of a senior lien, then then omitted lienor is not wiped off title by the foreclosure auction. It remains on title as if there was no foreclosure of the senior lien. If the missed lien is an IRS lien there’s no right of redemption action since the IRS lien was not wiped off the title of the property. There’s no way for an ordinary bidder to determine who the trustee notified concerning an upcoming trustee’s sale. Afterwards, after the trustee’s sale, the winning bidder can usually get a copy of the TSG (Trustee’s Sale Guaranty) and compare the lienholders disclosed therein with her own title record data to determine if all the liens she knew of were disclosed to the foreclosing trustee. Answer to Second Question: Whoever has owned the property or now owns the property, since the foreclosing trust deed was recorded, has to be individually researched to see what liens might have attached to the title of the property during their time of ownership. Switching the title of property around while it’s in foreclosure is not very common. Theoretically it seems simple, but practically speaking it’s not that easy to talk people into taking title to property in foreclosure and then screwing up your credit by filing a bankruptcy in your name to stall the foreclosure sale of the property Hope this helps. Follow Ups: Re: Post-sale consequence of missed notification to a lien of record... bob 11:10 PM, 10/15/03 (2) Failure to notify a junior lienor is rare... Ward-CA- 4:20 PM, 10/16/03 (1) Thank you. bob 8:11 AM, 10/17/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : To any party with expertise in trustee sale procedures. : : What happens if the IRS is not notified by the trustee prior to a trustee sale of a property in which a federal tax lien is present or where the owner of the property has an outstanding federal tax lien. Does the redemption period still apply or is there no redemption period as the lien will not be wiped off due to non notification. How can a potential bidder confirm prior to a sale that the trustee has made the statutory notifications to the IRS. : : *Second question. : : Often times a property is transferred multiple times prior to a scheduled trustee sale in an attempt to delay sale. Often these parties file BK to delay sale. Do each of these parties that have owned the property or a interest in the property have to be checked for the presence of fed. tax liens. Note that many parties may own an interest in the property at the time of sale as their game is often to transfer partial interest to different parties every 30 days or so. What is the best way to check if the property is clear of any problematic fed. tax liens prior to the sale. Thank you. : : -=-=-=-=-=-=-=-=-=-=-=-=-=-=- : Bob, : Answer to First Question: : If any junior lienor is not notified by the trustee, as required, of the impending foreclosure of a senior lien, then then omitted lienor is not wiped off title by the foreclosure auction. It remains on title as if there was no foreclosure of the senior lien. : If the missed lien is an IRS lien there’s no right of redemption action since the IRS lien was not wiped off the title of the property. : There’s no way for an ordinary bidder to determine who the trustee notified concerning an upcoming trustee’s sale. Afterwards, after the trustee’s sale, the winning bidder can usually get a copy of the TSG (Trustee’s Sale Guaranty) and compare the lienholders disclosed therein with her own title record data to determine if all the liens she knew of were disclosed to the foreclosing trustee. : Answer to Second Question: : Whoever has owned the property or now owns the property, since the foreclosing trust deed was recorded, has to be individually researched to see what liens might have attached to the title of the property during their time of ownership. : Switching the title of property around while it’s in foreclosure is not very common. Theoretically it seems simple, but practically speaking it’s not that easy to talk people into taking title to property in foreclosure and then screwing up your credit by filing a bankruptcy in your name to stall the foreclosure sale of the property : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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