inheritance tax pa sheriff sale

Philadelphia, Pennsylvania
Tax Liens & Mortgage Notes
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inheritance tax pa sheriff sale

Krish Patel
Member since 2023 · 1 post · 1 vote

I bought property in sheriff sale and there was a inheritance tax lien on it when i went to sale. title company escrowed $5500 and asked me to get pay off statement if i want to get that remaining money back. I contacted PA revenue department and found out based in their calculation it is $9500 owed to remove lien. they applied 12.5% as sibling tax rate. when i asked to apply 4.5% as surviving heir is grand daughter, they said in obituary they mention deceased had sibling. while foreclosure has no mention of sibling and only mention of gran daughter which is 4.5%

2 questions:

1. they are asking me to prove obituary is wrong and actually surviving heir is grand daughter. how i can find this information? where should i check?

2. if i don't do anything, do i still owe title company remaining amount when they find out that actual lien is more then they escrowed?

can someone help legally with PA revenue on this?

Thank you, Please reply and help if you know something

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y
    Quote from @Krish Patel:

    I bought property in sheriff sale and there was a inheritance tax lien on it when i went to sale. title company escrowed $5500 and asked me to get pay off statement if i want to get that remaining money back. I contacted PA revenue department and found out based in their calculation it is $9500 owed to remove lien. they applied 12.5% as sibling tax rate. when i asked to apply 4.5% as surviving heir is grand daughter, they said in obituary they mention deceased had sibling. while foreclosure has no mention of sibling and only mention of gran daughter which is 4.5%

    2 questions:

    1. they are asking me to prove obituary is wrong and actually surviving heir is grand daughter. how i can find this information? where should i check?

    2. if i don't do anything, do i still owe title company remaining amount when they find out that actual lien is more then they escrowed?

    can someone help legally with PA revenue on this?

    Thank you, Please reply and help if you know something


     Uggh - yep this is a disaster in PA - and even as a lender (Which we are) if we foreclose we are responsible for this. Well if there are siblings this could create multiple problems, the foreclosure could be contested later on because not all family was properly served or notified.  So you may have to do quiet title or redo the foreclosure sale - probably not what you want.

    Or you could pay the extra which the title company is going to get because they will not be able to record the deed until those fees are paid. 

    To find the obituary is wrong, find out who filed and signed the death certificate. You could also get the obituary and skiptrace the people and reach out to them. 

    The other option is go back to the foreclosing attorney and ask them for lexis nexis on the borrower to confirm - they may not give you this information but you can ask

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  • Chad U.
    Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
    3y
    Quote from @Chris Seveney:
    Quote from @Krish Patel:

    I bought property in sheriff sale and there was a inheritance tax lien on it when i went to sale. title company escrowed $5500 and asked me to get pay off statement if i want to get that remaining money back. I contacted PA revenue department and found out based in their calculation it is $9500 owed to remove lien. they applied 12.5% as sibling tax rate. when i asked to apply 4.5% as surviving heir is grand daughter, they said in obituary they mention deceased had sibling. while foreclosure has no mention of sibling and only mention of gran daughter which is 4.5%

    2 questions:

    1. they are asking me to prove obituary is wrong and actually surviving heir is grand daughter. how i can find this information? where should i check?

    2. if i don't do anything, do i still owe title company remaining amount when they find out that actual lien is more then they escrowed?

    can someone help legally with PA revenue on this?

    Thank you, Please reply and help if you know something


     Uggh - yep this is a disaster in PA - and even as a lender (Which we are) if we foreclose we are responsible for this. Well if there are siblings this could create multiple problems, the foreclosure could be contested later on because not all family was properly served or notified.  So you may have to do quiet title or redo the foreclosure sale - probably not what you want.

    Or you could pay the extra which the title company is going to get because they will not be able to record the deed until those fees are paid. 

    To find the obituary is wrong, find out who filed and signed the death certificate. You could also get the obituary and skiptrace the people and reach out to them. 

    The other option is go back to the foreclosing attorney and ask them for lexis nexis on the borrower to confirm - they may not give you this information but you can ask

    PA my favorite.  Yet another reason I stay clear of this state....
    1Reply
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