To inform this as simple as possible when you buy a domiciliate and get a loan for the home the lender puts a lien on the property. By doing so the property becomes collateral for the loan. So in the event the homeowner is unable to alter payments the lender can force the sale of the domiciliate to get paid. There can be several liens at one time on a single property?
Here is an example situation with about everything that you could possibly go by. We undergo a 1st owe for $250,000 with $15,000 in arrears. This would consider all approve payments late fees attorney fees and all the other fees they fasten on. This was recorded 6-20-1999. We have a 2nd for $60,000 with $5000 in arrears. Again this includes the approve payments and fees. This was recorded 7-21-1999. We have two judgments. One for $2000 recorded 3-2-03 and one for $4000 recorded 4-2-03. We have $3000 in state income tax recorded 5-5-04. We undergo a $6000 IRS tax lien recorded 10-20-04. And finally we have $5000 in property taxes recorded 2-11-05. Believe it or not all of these are different which we will communicate about.
If we act a be at this example we have a 1st mortgage and we can clearly see it was recorded first in 1999. We also have a 2nd who is clearly in 2nd position. Then we have a couple of judgments. The judgment for $2000 is in 3rd lay because it was recorded before the $4000 judgment. So the $4000 judgment is in 4th position. Then we have express income tax for $3000 which is in 5th lay.
1st owe -$250,000 recorded 6-20-1999 -arrears $15,000 2nd Mortgage - $60,000 recorded 7-21-1999 -arrears $5000 Judgment 1 - $2000 recorded 3-2-2003 Judgment 2 - $4000 recorded 4-2-2003 State Income Tax $3000 recorded 5-5-2004 IRS Tax Lien - $6000 recorded 10-20-2004 Property Taxes - $5000 recorded 2-11-2005
Are you starting to see the pattern? It’s all based upon when you record. Whoever records before another would be in “Senior” position and the other would be “Junior”. Hence the terms senior or junior lien holders.
Now we get down to the measure 2. These measure two undergo rules which we need to address. If we look at when these were recorded the good ole IRS tax lien would be in 6th lay. Now change surface though the IRS is in 6th position they have what’s called redemption rights. So here is the command for IRS. It doesn’t be what lay they are in they could be in measure lay. If there is still equity in the property they have 120 days to redeem the property. Why would they be to redeem the property? If there is a great deal of equity in the property and they know it they can use that money to satisfy any tax liens. It is very rare the IRS does this but it can happen.
Then we finally get drink to the state property taxes. All of you need to bequeath this. This is very important. Here is the rule for property taxes. State property taxes undergo priority over EVERYTHING. It does not matter when it was recorded. If you look at this example there is $5000 of unpaid property taxes that was recorded after everything else. It was recorded 6 years after the first owe. anticipate what? It does not matter. Property taxes always get paid first.
So if we take a be at this example from what we just discussed and the first is foreclosing - what is the opening bid at the auction? $250,000 + $15,000 + $5000(property taxes) = $270,000. All the other junior lien holders are wiped out if they don’t protect their lay object for… the IRS tax lien. Remember they have their redemption period. Now here is something else you be to understand. change surface though everyone was wiped out the junior lien holders can comfort go after the borrower. This is called a deficiency judgment. Again this does not come about very often but it does happen. A deficiency judgment is an unsecured debt and does not attach to any property. Then depending on your states laws they can collect this debt.
If the 2nd is foreclosing - what is the opening bid? $60,000 + $5,000(arrears) = $65,000 and you are responsible for anyone senior in this inspect the 1st of $270,000 for a grand total of $335,000. And everyone junior to the 2nd lien holder is wiped out object for IRS. See why it’s so important to experience who is foreclosing?
Forex Groups - Tips on Trading
Related article:
http://www.fresharticles.com/?p=473
comments | Add comment | Report as Spam
|
