TAX LIENS AND BANKRUPTCY

Tax Liens: A Definition

When a homeowner neglects or does not adequately pay property taxes on a property, the state government, and sometimes local or county governments, can place a lien on that property. Liens can also be placed on a property when a homeowner does not pay income or other taxes.

Tax liens are tied to the land associated with the property. If someone buys the property from a delinquent homeowner, the new buyer assumes the responsibility of the tax lien. This holds true even if the new owner had absolutely nothing to do with the delinquent tax payments.

In a typical sales process, the tax lien is usually paid as part of the closing costs from the proceeds of the sale of the home. This assures tax lien protection for the new home owner.

Why Should You Care About Tax Liens?

When a tax lien is not resolved by a homeowner, the property can be seized by the government or investors and then sold via a foreclosure sale. In this scenario, the home could be sold at a discount. Hence, tax lien properties can represent a great way for first-time buyers to find a home below market value.

Bankruptcy: A Definition

When homeowners cannot repay or fulfill debt obligations, they sometimes file for bankruptcy. Sources of debt that lead to bankruptcy are numerous: credit card debt, investment debt, mortgage defaults, etc.

Bankruptcy can be an extremely complicated process. In general, bankruptcy allows a person to eliminate obligations to creditors but severely damages his or her credit rating. The negative effects of a bankruptcy can impact a person’s financial well-being for decades.

Why Should You Care About a Bankruptcy? When a homeowner files for bankruptcy, his or her home can be seized by creditors, lenders, the government, or other invested parties. The home then can be sold via a foreclosure sale. Similar to tax lien properties, a home in a bankruptcy proceeding may be sold at a discount. Consequently, bankruptcy properties may represent a great way for first-time buyers to find a home below market value. For the tax lien and bankruptcy property market, CRN provides you with access to listings that may save you thousands of dollars. CRN’s proprietary database contains tens of thousands of property opportunities from various sources that could lead you to the purchase of your home.

To explore these listings, please visit http://www.crnhome.com/ or call our friendly customer support representatives at 800-511-4236.