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Old 02-27-2010, 09:14 AM
 
1 posts, read 3,531 times
Reputation: 11

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Hi, I found a house in a neighborhood that we wanted the most. The house is beautiful. The price is negotiable and acceptable. When the title was pulled, found a few clouds on the title. The owner is telling us that they would/have cleared most of it but one which is a Federal Tax lien of $668,000.00 which is on a divorced husband's name. We as buyers want to buy this property real quick. The house may end up in "Short sale" as per one of the conversation with the owner.

I wonder if we could buy the house and have the owner clear the cloud on the title eventually. Also, what are the consequences and liabilities that may occur if we were to purchase a home with cloud on the title???

Someone please help with this question.

Thanks
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Old 03-03-2010, 08:08 PM
 
10 posts, read 100,504 times
Reputation: 11
A cloud? The current seller has a problem, action to quiet title is the only recourse. The IRS can and has claimed property before banks and everyone else gets what is rightfully theirs. Think about it Willie Nelson is about to lose his house because he hasn't paid taxes in 27 years, so instead he sells it to 2 toothed Sally for 2 bucks. He rents back from her and Uncle Sam gets squat. So Congress passes a law that the Uncle gets paid first, before Wells Fargo, Citi, or anyone, of course if you are big enough bail out will follow. But I doubt you are asking as a multinational lending institution, so unless you can get your uncle to sign off on the tax lien, steer clear. A settlement attorney, note: not settlement company can give you better advice based on the particulars of your concern. DO NOT settle without having the lien cleared. good luck .
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Old 03-04-2010, 01:29 PM
 
Location: Jefferson County
26 posts, read 103,025 times
Reputation: 25
You should walk away. There are only three ways this can be resolved.

1. Seller satisfies lein.

2. You satisfy lein.

3. You and/or seller hire an attorney to pursue a certificate of discharge of property from federal tax lien under section 6325(b) of the Internal Revenue Code.

Option three can be very expensive but not as expensive as options 1 or 2.
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