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Updated over 11 years ago,

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Ibrahim Hughes
  • Real Estate Consultant
  • Bloomfield, NJ
1,043
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2,082
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Can Junior TAX Liens Be Negotiated?

Ibrahim Hughes
  • Real Estate Consultant
  • Bloomfield, NJ
Posted

Here in NJ (and I'm assuming it's the case in virtually every tax lien state), older tax liens have LESS priority than newly created (and sold) tax liens (Unlike mortgages where the reverse is often true).

I was told a while ago that older tax liens can often be negotiated (assuming the tax lien holder is willing to do so) particularly in the case where the newer tax lien is foreclosing thus possibly "wiping out" the older tax lien? Any experienced investors with knowledge or experience in this? I'm working with an owner who is upside down in a 'free and clear' property with the exception of $150k+ in tax liens (welcome to NJ). She'll take anything at this point and I noticed that there are 4 liens and the oldest and largest covers 2004-2010. The tax lien created and sold afterwards is foreclosing and I'm wondering if the older larger lien can be negotiated.

@Ned Carey ? Jerry K?

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