Legal Question in Real Estate Law in Georgia

What happens to a state tax lien on a property that has been foreclosed?


Asked on 7/06/10, 10:33 am

1 Answer from Attorneys

Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

A foreclosure sale will sever and extinguish any lien junior or subordinate to the one being foreclosed, with one notable exception. Foreclosure alone does not automatically extinguish a federal tax lien, which will stand as a lien against the property unless prior notice has been given to the IRS. The notice must have been given more than 25 days prior to the foreclosure sale and the IRS must fail to take any action within 120 days after the foreclosure sale to protect its interest in order to extinguish the lien with respect to the security.

Since we don't know the timing of the lien or details about the foreclosure, there is no way to answer you other than the general answer.

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Answered on 7/07/10, 10:02 am


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