Expert: Dick Dennis - 7/10/2008

Question
I am a Realtor representing a buyer and was suppose to close on a REO property 2 weeks ago BUT the seller has not cleared up a MN tax lien against the property. Is is safe to close on this property as the seller is issuing a "warranty deed" or does the tax lien stay against the property?

Answer
First of all, Chris, you gotta check with the title company to make sure that the tax lien has been or will be cleared off. Chances are that tax lien is against the former owner's name and that is the way they make sure the tax lien will be paid - they put that lien on anything and everything the former owner owned. Assuming, that the lender closed on a first mortgage, it is very probable that the tax lien was wiped out by that first mortgage since it has seniority over that tax lien. That is why I said to check with the title company. Remember your real estate class, Chris - only property taxes have seniority over all and any liens on the property. I wish you well.

Dick Dennis      dixiedee13@aol.com