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    mameme's Avatar
    mameme Posts: 1, Reputation: 1
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    #1

    Nov 10, 2010, 10:30 AM
    What happens to a federal tax lien on ga property that the bank is foreclosing on
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Nov 10, 2010, 01:27 PM
    If the bank forecloses, sells the house and recovers MORE than the balance of the mortgage, what's left goes to the IRS to settle the tax lien, either fully or partially.

    If the sale produces an amount that is LESS than the balance of the mortgage, the tax lien is not settled and you will continue to owe the taxes.

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