Steve,
So it seems that you dont know what property taxes are. Property taxes are for the city and county and sorry to say but yes their tax liens are given priority over all other liens. At least here in NC. Its state policy. I took that the NC RE agent course, so i know what i am talking about. If you are using cash, you dont have to pay the taxes when the deed is transferred but soon when the local gov call those taxes due. Whoever owns the property then have to pay the taxes current or else they are subject to lose the property. Out of the sale they will get their money regardless if the first receives all of their money or not. This is my last post about this subject.
Steve is pulling up IRS codes when i simply said i meant property taxes. Learn what they are Steve and what they consist of.
“First it doesn’t matter who files foreclosure whether it is 3rd or 4th lien holder or 10th or 12th. The way the payments work is as such. The irs liens gets first shot at the proceeds from the sale or auction. Next as follows;
*The state liens
*First lien holder
If any money left over then what is left goes to pay off;
*the secondary lien holders
*any mechanic liens
*credit card liens.
If the money runs out before paying off any of the other lenders or lien holders then what they will do is…”
Charlotte, I made no mention of property taxes in my post. I was only talking about IRS liens. And I was responding to your post which I quote here. All I am saying is that I don’t think that the IRS “gets first shot at the proceeds from the sale”. The IRS is not in a superior position to the first mortgage holder. If I am wrong, then that wouldn’t be the first time. Just cite the source of the info.
Charlotte, even though you corrected yourself about mixing up the IRS taxes and property taxes, I think you should go back to the post where you mentioned this, and make the corrections there…so as not to get any more people questioning it. Some might read a thread…see your post…then stop reading right there and post a reply before reading your other post that corrected the mistake. It might help all concerned if you edited that particular post.
In case you don’t know how, go to that post, and click modify, then you can make the necessary changes.