Federal Tax Lien on Foreclosure

[Chris Brown]

Good morning BP,

I am looking at a property in foreclosure that has a Federal Tax Lien recorded PRIOR to the recorded date of the first mortgage. In this scenario, the Federal Tax Lien would take priority, correct? SO if I bought this property at auction, I would be responsible for the Federal Tax Lien as well?

Thanks,

Chris

[Drew Shirley]

If the tax bill was paid, the lien should have been released. I would just contact the IRS and start asking questions as a "potential purchaser." They may require you to have an "interest" in the property before you talk to them, but I would think a signed purchase contract would qualify - it's legally a purchase option, which is an interest in real property.