Federal Tax Lien Sales

Federal Tax Lien Sales Are A Method For The Federal Government To Seize Your Property.

Federal tax lien sales begin a little earlier when the lien is put on the home or other property. The federal tax lien sales result from the claim by the federal government that you owe taxes on the property or your income. When these taxes are not paid, and the government believes they will not be paid, they then force a foreclosure, resulting in federal tax lien sales on the properties concerned. Federal tax liens on the property need not be publicly announced but it is in the interest of the federal government to do so. When the government announces the lien they are in essence announcing their place in the 'pecking order' of who gets first crack at the money owed. When the government forecloses and wants to collect, the property is sold at public auction. Steep discounts are available on the property if you want to take advantage of someone's misfortune.

Once the home is sold at a federal tax lien sales auction the money goes to the appropriate federal authority. Federal tax lien sales often result from no fault on the part of the owner. Federal tax lien sales can occur because the liens "run with the land. " If you were unfortunate enough not to be aware of the previous owner's debts, the fault lies with you, but the debt must be paid. Another name for federal tax lien sales are tax deed sales. Do not think that the owner can sell the home before the government catches on.

Searches of sales are run and the amount will come from the owner at closing. Federal tax lien sales are yet another sword held over the head of property owners. Unfortunately it is selectively applied to those with little political influence. Paying off your home does not leave you 'free and clear' regarding your home. Owe on income tax and you become a candidate for federal tax lien sales.