Legal Question in Real Estate Law in Illinois

Tax lien or mortgage?

I had placed a bid on a MLS home in Stephenson County. My agent learned the owners� bank (not mine) was ready to foreclose. Their bank has been working with me negotiating the selling price, but today they discovered that there are tax liens on the property as well. Now everything is on hold and the realtor says the home has to go through foreclosure because of the liens. I really want this property and would like to know, if there is a tax lien on a property and a mortgage, does �one� take precedence? Can the home be sold for the back taxes without satisfying the mortgage or can the bank sell the home without paying the back taxes?


Asked on 3/18/05, 11:35 pm

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Tax lien or mortgage?

Tax liens are not extinguished by foreclosure. The property could be sold for back taxes without satisfying the mortgage, but not vice versa.

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Answered on 3/29/05, 2:03 pm


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