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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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is there a way to get a reduced settlement from a tax lein

Resolved Question:

is there a way to get a reduced settlement from a tax lein company such as Tax Ease Lein Investments 1, LLC
Submitted: 8 years ago.
Category: Tax
Expert:  Ed Johnson replied 8 years ago.



Thank you for your question.


How much is the tax lien for?


On what date was the lien purchased by the company?



Customer: replied 8 years ago.
the tax lein is approximatly $1000.00 . the letter was sent out to me on 7/18/2008.
Expert:  Ed Johnson replied 8 years ago.

What I am confused about here is that you paid THEM 1900. I assume THEM is the person who purchased your tax lien.


The redemption period in Kentucky is 1 year, so if someone bought your lien for 1,000, and is collecting 1900 that is a very good return on their money. Typical tax liens in KY only bring 12% to the person who holds the lien.


If you paid the tax plus interest and penalties totalilng 1900 to the tax lein holder why are you not getting the property back?


What county is Madisonville in?

Customer: replied 8 years ago.
I paid Kentucky the amount due before my deadline and they sold the tax leins anyway. Now the purchaser (Tax ease lein investments 1) is trying to get me to pay them for three tax leins that i feel i have already paid. could i get this amount reduced from the 1000.00 they want so i can get out of this without legal action and make everyone happy?
Customer: replied 8 years ago.
i cant pay you 20 dollars if you didn't answer my question. i guess it wasn't enough money for a good answer....
Expert:  Ed Johnson replied 8 years ago.



I apologize for not getting back to you sooner.


This is not the case. I agreed to do it for the 20 dollars, and it is good enough for the best answer I can give.


If you still need an answer to this, please vefiy your county.


There is a special process for redemption and I need to make sure you followed the process correctly.



Customer: replied 8 years ago.
I appologize for being rude. Im in Hopkins County Ky. This issue aggrivates me, because I feel as though I have already paid them. If there is anything else you need just let me know exactly and i can get you the information.
Expert:  Ed Johnson replied 8 years ago.

Not a problem,


I understand how stressful this can be.


IN your country this is how the redemption period works:



Property sold at a tax sale is subject to a statutory right of redemption of one year. Interest averages between 16 and 36% per year.


Redemption Period: The delinquent taxpayer or any other person having or owning a legal interest in the real property covered by a certificate of delinquency may at any time up until enforced collection proceedings have been completed pay the total amount of the certificate to the purchaser (Sec. 134.480). If the collection proceedings result in a foreclosure sale of the real estate property, the delinquent taxpayer may redeem the real estate within one (1) year of the sale if the property is sold for less than two-thirds (2/3) of its appraised value, by paying the original purchase amount, and ten percent (10%) per year interest thereon (Sec. 134.490, Sec. 426.530).


If you paid the fees as you said then the property should have been redeemed. If you have not received title and release of the lein, then you need to see the country clerk to get the proper documents and your individual county process.


Your county does not make the process for redemption publically available.


Most counties and states require you to get a release of the Lien from the tax collector which may involve paying additional fees; and you may have to also file new title transfering ownership from the lein holder to you.


If you have met the redemption requirements as stated above, then you may be better off hiring a realestate attorney to handle this for you.




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