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  • September 5, 2009 at 9:33 AM #16306
    pepsi
    Participant

    Here is the story:

    Mr. & Mrs. Ostrie own 2 properties:

    1. 5455 Caminito Mundano (bought in 2004)

    2. 5180 Great Meadow Dr. (bought in 2007)

    The couple owed about $85K Fed/State Tax.

    On the tax lien document, it says:
    Last Know Address: Property #2
    The Tax Lien document does not specifically say “This lien is attached to a certain property”. The Tax lien is for taxable year 2007.
    Liens filed in Feb and April 2009.

    In June, Property #1 sold on Trustee Sale for $590K (loan amount $541K). The flipper sold the house in July for $800K

    Question: Did the flipper responsible for Fed/State Tax lien ?

    The Property #2 just received the NOT. Would the flipper of Property #2 be responsible for the Tax Lien ? or flipper of Property #1 ?

    And if the answer is that the flipper #2 would be responsible for the lien, then what if no bidder at the TS, and the house goes back to bank ? Would the bank be responsible for the Tax liens ?

    Thanks

    September 5, 2009 at 11:46 AM #453354
    UCGal
    Participant

    Are you confusing federal and state income taxes – which are not directly tied to property with Property taxes?

    I don’t see any reason the person who bought the first home would be responsible for the previous owners INCOME tax.

    I’ve been keeping track, via public records, of a former contractor we’re in arbitration with. He is in default on his property tax – which shows up at the sdtreastax.com site under his home address. He is in default for state tax – which shows up under his name – not his property address.

    They are unrelated. (But show that when we get our binding judgement, we’ll have a heck of a time collecting.)

    I think you’re confusing property taxes – which are tied to specific parcels, and federal and state tax liens – which are tied to people or businesses.

    September 5, 2009 at 11:46 AM #454149
    UCGal
    Participant

    Are you confusing federal and state income taxes – which are not directly tied to property with Property taxes?

    I don’t see any reason the person who bought the first home would be responsible for the previous owners INCOME tax.

    I’ve been keeping track, via public records, of a former contractor we’re in arbitration with. He is in default on his property tax – which shows up at the sdtreastax.com site under his home address. He is in default for state tax – which shows up under his name – not his property address.

    They are unrelated. (But show that when we get our binding judgement, we’ll have a heck of a time collecting.)

    I think you’re confusing property taxes – which are tied to specific parcels, and federal and state tax liens – which are tied to people or businesses.

    September 5, 2009 at 11:46 AM #453959
    UCGal
    Participant

    Are you confusing federal and state income taxes – which are not directly tied to property with Property taxes?

    I don’t see any reason the person who bought the first home would be responsible for the previous owners INCOME tax.

    I’ve been keeping track, via public records, of a former contractor we’re in arbitration with. He is in default on his property tax – which shows up at the sdtreastax.com site under his home address. He is in default for state tax – which shows up under his name – not his property address.

    They are unrelated. (But show that when we get our binding judgement, we’ll have a heck of a time collecting.)

    I think you’re confusing property taxes – which are tied to specific parcels, and federal and state tax liens – which are tied to people or businesses.

    September 5, 2009 at 11:46 AM #453887
    UCGal
    Participant

    Are you confusing federal and state income taxes – which are not directly tied to property with Property taxes?

    I don’t see any reason the person who bought the first home would be responsible for the previous owners INCOME tax.

    I’ve been keeping track, via public records, of a former contractor we’re in arbitration with. He is in default on his property tax – which shows up at the sdtreastax.com site under his home address. He is in default for state tax – which shows up under his name – not his property address.

    They are unrelated. (But show that when we get our binding judgement, we’ll have a heck of a time collecting.)

    I think you’re confusing property taxes – which are tied to specific parcels, and federal and state tax liens – which are tied to people or businesses.

    September 5, 2009 at 11:46 AM #453548
    UCGal
    Participant

    Are you confusing federal and state income taxes – which are not directly tied to property with Property taxes?

    I don’t see any reason the person who bought the first home would be responsible for the previous owners INCOME tax.

    I’ve been keeping track, via public records, of a former contractor we’re in arbitration with. He is in default on his property tax – which shows up at the sdtreastax.com site under his home address. He is in default for state tax – which shows up under his name – not his property address.

    They are unrelated. (But show that when we get our binding judgement, we’ll have a heck of a time collecting.)

    I think you’re confusing property taxes – which are tied to specific parcels, and federal and state tax liens – which are tied to people or businesses.

    September 5, 2009 at 1:18 PM #453374
    Effective Demand
    Participant

    It depends, as I understand it it depends on when the tax lien was recorded.

    If the tax lien was junior to the foreclosing lien it gets wiped out except they have a right of redemption period of 120 days.

    If it was senior to the lien on property #1, since propert #1 sold first then flipper #1 would have to pay it.

    September 5, 2009 at 1:18 PM #453979
    Effective Demand
    Participant

    It depends, as I understand it it depends on when the tax lien was recorded.

    If the tax lien was junior to the foreclosing lien it gets wiped out except they have a right of redemption period of 120 days.

    If it was senior to the lien on property #1, since propert #1 sold first then flipper #1 would have to pay it.

    September 5, 2009 at 1:18 PM #454171
    Effective Demand
    Participant

    It depends, as I understand it it depends on when the tax lien was recorded.

    If the tax lien was junior to the foreclosing lien it gets wiped out except they have a right of redemption period of 120 days.

    If it was senior to the lien on property #1, since propert #1 sold first then flipper #1 would have to pay it.

    September 5, 2009 at 1:18 PM #453568
    Effective Demand
    Participant

    It depends, as I understand it it depends on when the tax lien was recorded.

    If the tax lien was junior to the foreclosing lien it gets wiped out except they have a right of redemption period of 120 days.

    If it was senior to the lien on property #1, since propert #1 sold first then flipper #1 would have to pay it.

    September 5, 2009 at 1:18 PM #453907
    Effective Demand
    Participant

    It depends, as I understand it it depends on when the tax lien was recorded.

    If the tax lien was junior to the foreclosing lien it gets wiped out except they have a right of redemption period of 120 days.

    If it was senior to the lien on property #1, since propert #1 sold first then flipper #1 would have to pay it.

    September 5, 2009 at 1:58 PM #454014
    pepsi
    Participant

    [quote=UCGal]
    I think you’re confusing property taxes – which are tied to specific parcels, and federal and state tax liens – which are tied to people or businesses.[/quote]

    No, I wasn’t confused with Property tax and income tax. As mentioned, there are Tax liens from Federal and State.

    That is why I asked this question.
    I don’t know if the income tax lien attached to a person or a property.
    And if it is attached to a person, then why won’t the first buyer be responsible for the house he/she bought ?

    September 5, 2009 at 1:58 PM #453409
    pepsi
    Participant

    [quote=UCGal]
    I think you’re confusing property taxes – which are tied to specific parcels, and federal and state tax liens – which are tied to people or businesses.[/quote]

    No, I wasn’t confused with Property tax and income tax. As mentioned, there are Tax liens from Federal and State.

    That is why I asked this question.
    I don’t know if the income tax lien attached to a person or a property.
    And if it is attached to a person, then why won’t the first buyer be responsible for the house he/she bought ?

    September 5, 2009 at 1:58 PM #453942
    pepsi
    Participant

    [quote=UCGal]
    I think you’re confusing property taxes – which are tied to specific parcels, and federal and state tax liens – which are tied to people or businesses.[/quote]

    No, I wasn’t confused with Property tax and income tax. As mentioned, there are Tax liens from Federal and State.

    That is why I asked this question.
    I don’t know if the income tax lien attached to a person or a property.
    And if it is attached to a person, then why won’t the first buyer be responsible for the house he/she bought ?

    September 5, 2009 at 1:58 PM #454206
    pepsi
    Participant

    [quote=UCGal]
    I think you’re confusing property taxes – which are tied to specific parcels, and federal and state tax liens – which are tied to people or businesses.[/quote]

    No, I wasn’t confused with Property tax and income tax. As mentioned, there are Tax liens from Federal and State.

    That is why I asked this question.
    I don’t know if the income tax lien attached to a person or a property.
    And if it is attached to a person, then why won’t the first buyer be responsible for the house he/she bought ?

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