March 29, 2008
Buy a home with a federal tax lien on it
A tax lien basically limits the rights the tax payer has on his or her property. When you are late on back taxes such as income, property, or other taxes a lien can arise. Property can still be put up on auction even if the owner is in the process of disputing the tax or charge. However, real estate investors that buy a home with a federal tax lien on it can only be permitted if all delinquent property taxes remain unpaid for the legally specified amount of time. The new property owner becomes responsible for payment even if the tax obligation was incurred by a prior owner.