I'm getting ready to market to property owners with tax liens. When I get a motivated seller, how is the tax lien handled? Is the lien amount deducted from my offering price? Or does it get paid from seller proceeds (escrow pays tax assessor)? Where does the "buyer" come in to play with liens? Any help with this would be great!
You negotiate that with the seller first since they're the ones ultimately responsible for paying those taxes. Whatever you agree with seller will be included in the deal with the buyer.
Actually it is negotiable who pays it. You could pay more and the seller pays back taxes or pay less and you pay them. Essentially the Seller would get the same net proceeds either way.
Most contracts are written with with language similar to "Seller to provide title Free and clear of all liens and encumbrances" In that case the seller pays out of the sales proceeds. However it is negotiable so make sure your contract is clear and that you know your responsibilities.