Tax lien sentence example
- The government uses a tax lien to secure property in lieu of late or nonpayment of property taxes.
- Securing a tax lien allows an investor to gain control over a real property with an investment that is a fraction of the market value of the property.
- There was a time when an investor would need to show up physically for an auction, but it is becoming popular to hold tax lien sales online.
- If the original property owner declares bankruptcy, creditors have priority over a tax lien holder.
- These include criminal records, bankruptcies, and judgment and tax lien databases.Advertisement
- When a property owner fails to pay federal or state taxes, the government can place a tax lien on the property.
- The tax lien can be removed from the property if the property owner satisfies his taxes due, which often includes fees and interest, or the IRS accepts a bond submitted by the property owner agreeing to pay the debt.
- The county or other government collecting property taxes place the tax lien.