Now that I have finally received a final bank approval from Bank of America for my listing, I have been notified by the closing attorney that we have 2 state tax liens. Can someone let me know how to handle this so we won't lose this deal.
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Not sure what state you are in, but you can find and submit 'Lien Release' forms to the state to take the lien off the property, which they will usually do if there is no equity in their collateral. If you fill out the forms, hand deliver them or email (if that's what your state wants). If applicable on the application to remove interests from a property, also put the title companies name. They will send a letter to seller or title of their intention to release and you should be good to go although you want to work fast on this. The Seller may have to create a payment plan. Smitty's right that title should have been pulled before submitting the offer as I did have BOA offer to pay partial state lien as it was on the prelim HUD, but got negotiated out after the fact.
Maybe the seller has another property the state will agree to move the liens to.... Agree with Smitty. Always get titled pulled asap, when you take the listing.
Title should always be pulled up front before you submit a package or right after you submit it so that any other liens can be included on the HUD. I think State Tax Liens trump mortgage. Are they high? I would call the lender and let them know title found this and they need to be paid out of the proceeds. Doesn't mean the lender will allow it, but that is where I would start first. Otherwise you are looking at having the seller or buyer come up with the additional $$,
I have NEVER been able to negotiate a tax lien down. Most other liens can be negotiated lower, but to my knowledge tax liens cant.