Negotiating Other Types of Liens

There are other types of liens that can be negotiated for a great deal:

• Code enforcement liens
• IRS liens
• Private mortgages (Ex., family members who lent money to the homeowners)

Code enforcement or city liens may not even be recorded yet, so always check in person at City Hall or county records. These liens can be for overgrown grass, unsafe structure, work done without a permit, and more. These liens are definitely negotiable for pennies on the dollar.

• In most cases, these liens can be wiped out completely when you can prove that you are buying the home and fixing the problems they are concerned with.

IRS liens are defiantly negotiable, but can be time consuming to short sale. The IRS will often release the subject property and move the lien from the property to the homeowner’s name or to other property. Be sure you don’t waste your time trying to discount the IRS lien only to find out the foreclosure sale beat you to the deal.

Homeowners often borrow money from friends or family in an attempt to keep their home. These people get wiped out every day. When family members lend money they usually do not realize they will get wiped out if the homeowners fall behind again and end up at the foreclosure sale.