Updated about 6 years ago on . Most recent reply
Tax liens - what happens to them in a Foreclosure process?
In a Foreclosing process that ends in a Sheriff sales, what happens to existing State dept of revenue (tax) liens?
Right now I have a home in PA that has 4 separate state of PA tax liens totalling $46k for a homeowner I'm dealing with.
Now, this house is commonly owned by a divorced couple that is still on the title together. These liens belong to the husband-only.
They may have a Buyer step in and buy the house, and there is enough Equity in the house (profit from the sale of this house) to actually pay off the $46k in tax liens. However, the husband and wife don't see eye-to-eye on this potential sale so this sale may not happen.
If the house ends up getting foreclosed on and someone/Investor buys the house at the sheriff sale, what happens to these Tax liens? Are they wiped away or would they jump from being placed on this property to being placed back on the Husband's credit report?