Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Foreclosures
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago on . Most recent reply

User Stats

11
Posts
0
Votes
Soo Y.
  • Bergen County, NJ
0
Votes |
11
Posts

Federal Restitution Lien in Place but USA Not a Named Defendant

Soo Y.
  • Bergen County, NJ
Posted

Here is a real-life scenario:

1. SFR listed on MLS;

2. Same SFR also has a Lis Pendens filed against the owner and is scheduled to come to sheriff sale next month;

3. Lis Pendens was filed two months before the United States of America put a federal lien ($$$!) on the property because the owner is liable for restitution in a criminal case;

4. Because the Lis Pendens was filed prior to the federal lien, the USA was not a named defendant on the Lis Pendens;

4. Seller's MLS listing agent claims not to know about the federal lien, speaks with Seller's attorney and attorney tells agent that they will be able to deliver clear title (attorney did not state how);

5. Seller's agent pushes for a written offer, noting that the Seller is very motivated (obviously).

I hope you're able to follow the above.  Questions:

1. Could the sheriff sale move forward with the LP not listing the USA as the defendant?

2. If so, does that mean the federal lien stays with the house notwithstanding a third party purchases at auction?  Typically, even if the USA is a named defendant in a foreclosure action, the government has either a 120 day or 1 year right of redemption.

3. Short of Seller paying off the federal lien ($$$!), I cannot see how Seller could give clear title.  Could you?

Loading replies...