Bankruptcy Or Foreclosure

I have two questions that I havent been able to find the answers to. Hopefully, someone can help me out.

1. What happens if the person declares bankruptcy?

2. What happens if the mortgage company forecloses on the property?


Thank you.

Ryan

Comments(8)

  • letsgomario31st August, 2003

    With either one of those situations the person credit will be severely impaired for 7 to 10 years. Making it more costly to buy a car, a house or to get ane other type od credit. They are both bad and it should be avoided if at all possible.

  • Ryan406931st August, 2003

    I meant in reference to a tax lien on the property. How do those occurances affect a tax lien?

    Ryan

  • jeff1200231st August, 2003

    I'm not sure how Bankruptcy effects the issue. I believe that Bankruptcy doesn't wipe out a tax lein, however it could make you have to wait until the trustee, or courts actually finalize everything, and discharge the bankruptcy. With regards to the First foreclosing, The first mortgage holder will satisfy your lein, as a property tax lein is a senior lein. Property Tax Leins are senior to IRS Leins also. The explanation I got was that landowners were paying property taxes since there were property owners in this country, and that Property taxes Pre-date Income Taxes. Therefore Property taxes are the senior lein. Don't know for sure if that's really the reason why, but I thought it was interesting.
    Good luck with finding an authoritative answer on the bankruptcy part of the question.
    Jeff

  • Ryan40691st September, 2003

    Quote:
    Property Tax Leins are senior to IRS Leins also.

    I dont believe that is true.

    Ryan

  • jeff120021st September, 2003

    Ryan,
    I don't know absolutely, however check out this article from this site to collaborate my post above.
    http://www.thecreativeinvestor.com/ViewTopic8275-7-3.html

  • lossmithit7th September, 2003

    Bankruptcy is a court ordered auto stay for all creditors if you are holding a tax debt that would be U. You can not collect a debt while in Bk. After it is dicharged or dismissed. You could move ****Must Reach Senior Investor status before posting URL's*** also will depended on th chapter of BK if 7 you would be fine. most of the time you tax cerft. is just a byproduct of the person bailing on the debt, however if its a 13 the court wil build a plan , a way to maybe redeem the cerft by way a three year plan. I am not sure but I would think if you were holding a tax cerft for two of the three years, then in the last year the guy filed BK 13 you could hold onto that cerft. for another 3 years. BK is pooh!

  • alubeck10th September, 2003

    property Tax liens are senior in that they stick with the house at foreclosure, even if the bank buys the property back. IRS liens can float with a person, proeprty tax leins cannot. Thus, when refereing to the proerpty, property tax liens are superior.

    The city will get their cash.

    Quote:
    On 2003-09-01 00:19, Ryan4069 wrote:
    Quote:
    Property Tax Leins are senior to IRS Leins also.

    I dont believe that is true.

    Ryan

  • benny22210th September, 2003

    absolutely correct
    [addsig]

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