Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Roxie
Does anyone have any experience dealing with an IRS lien being filed before the "assignment" of mortgage?
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Brindy
IRS liens, properly called a Notice of Federal Tax Liens are filed and subject to (with a few minor exemptions) to prior perfected liens.  An IRS lien attaches only to your equity and all other property you own - yes indeed, a tax lien and even get in the way of you selling your car! 

If you lose the house the IRS gets nothing unless there was a residual sales balance, in which case the IRS gets priority status to making a claim for the funds.

The assignment means nothing to an IRS lien.  An IRS lien expires as a function of law 10 years after filing unless reduced to judgment or re-filed (which is rare).

This is the short version.





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Moose
Roxie wrote:
Does anyone have any experience dealing with an IRS lien being filed before the "assignment" of mortgage?


More information is required to even attempt to answer.

IRS liens are filed against properties - not mortgages,

Moose



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Roxie
I didn't think I wasn't being clear..but I'll re-explain the best I can,

Mortgage A is filed at recorders office
IRS Lien Filed a few months later
Assignment of Mortgage A is filed a few months after the IRS lien.

Would the IRS lien take priority over the assignment of mortgage?

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George Burns

Assignment of the mortgage is irrelevant. In fact,  the mortgage is irrelevant. The IRS lein is against the property and the equity therein, if any.

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Moose
Roxie wrote:
I didn't think I wasn't being clear..but I'll re-explain the best I can,

Mortgage A is filed at recorders office
IRS Lien Filed a few months later
Assignment of Mortgage A is filed a few months after the IRS lien.

Would the IRS lien take priority over the assignment of mortgage?



This isn't legal or tax advice and with these situations, LOCAL as well as IRS rules apply - but as Brindy points out, the IRS lien will be sitting there waiting no matter who records an assignment.

If and when YOU (the taxpayer) attempt to sell the property (and thus intend to pay off the mortgage note), the lien will put the IRS at the front of the line to be paid before the title can be freed up. No title company will insure, let alone conduct a closing until the IRS releases the lien. In fact, a new buyer's lender won't go to the trouble of underwriting a loan for the property unless the IRS is going to be paid as part of the deal.

This is a fairly common occurrence in bankruptcy - the filer has more than just mortgage problems, they often have tax deficiencies that could theoretically be corrected by the sale of a investment (tax-liened) property to pay off the IRS. To get that property sold requires coordination among the IRS, the Trustee, the new buyer's lender and title company, etc., etc., but it does get done.

Moose

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William A. Roper, Jr.

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George Burns said:

Assignment of the mortgage is irrelevant.  In fact, the mortgage is irrelevant. The IRS lein is against the property and the equity therein, if any. 


George, I AGREE with your first statement that the assignment is irrelevant.

But I believe you are mistaken in your assertion that the mortgage is irrelevant.  IF the lien had arisen in advance of the granting of the mortgage, then the IRS lien would probably have priority (first in time, first in right).  IF the IRS lien had been recorded in advance of the grant of the mortgage, it would have the additional advantage of first to record, first in right, etc.

Even if the lien arose AFTER the mortgage was granted, the lien might be superior in a few places IF the mortgagee failed to record its interest due to the recording acts.

But the recording acts mostly only protect an innocent purchaser for value.  Since the IRS purchased nothing in respect of the property, I am doubtful that the IRS lien can get in front of the prior mortgage in most places, unless there is some U.S. statutory provision of which I am unaware.  I think that the recording acts of most jurisdictions, whether race, notice or race-notice are all going to mostly speak to the interests of an innocent purchaser for value.  But there might be some saving language to get a mechanics' lien ahead that could somehow also pull the IRS lien ahead of the unrecorded mortgage or deed of trust.

I would focus very carefully on the wording of the recording act of the jurisdiction and study the cases associated with the recording acts.

But the bottom line is that the assignment is merely a transfer of the perfected lien.  The question of lien priority is established by the competing claims and recording in respect of the recording acts but without respect to the transfer.  Failure to properly assign is not usually going to allow an unsecured claim or a junior lien to get ahead in priority past a more senior lien.
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