tax lien

Tax lien

The right of the government to enforce a claim against the property of a person owing taxes.

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Tax Lien

A claim on private property by a government that allows that government to take over and sell the property until it recovers what its owner owes in taxes. That is, if a taxpayer does not pay the appropriate amount in taxes and steadfastly refuses to do so, the government has the right to confiscate and sell his/her property until it takes in what the taxpayer owes. An investor may buy a tax lien from the government.

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tax lien

(1) A statutory claim on specific real property for ad valorem or other property taxes; the lien is automatic and nothing regarding a particular property needs to be filed.The tax lien has priority over all other liens—even a mortgage filed before the taxes became due.(2) A claim on all real property of a taxpayer within a certain geographical area, usually a county or parish, because of unpaid federal or state taxes. The lien attaches when the lien documents are filed with the local recording office,and not before.Even though an IRS lien does not take priority over a prior-recorded mortgage,a mortgage lender who fails to give proper foreclosure notice to the IRS may find the property still subject to the lien,even after foreclosure.