Glossary

A Notice of Default is an official IRS warning that you've failed to meet your tax obligations. Understanding this notice is crucial for preventing further tax complications.

A pre-foreclosure lien is a legal claim placed on a property when a homeowner falls behind on payments, acting as a warning sign before a full foreclosure process begins. It's a critical issue for homeowners to understand and address.

A levy and seizure is when the IRS takes your property to pay your unpaid taxes. It's a serious action and understanding it can help you avoid it.

A Notice of Intent to File Lien is a formal warning from the IRS that they plan to place a public claim on your property due to unpaid taxes. This notice is a serious matter, and it’s important to understand what it means and how to respond.

A constructive lien is a legal claim against property, created by a court ruling rather than a formal agreement, often stemming from unpaid debts. It's important to understand how these liens can impact you and your assets.

An equitable lien is a legal claim on someone's property to secure a debt, even without a formal agreement. It's created by a court to ensure fairness when someone is owed money.

Redemption rights are the legal right to reclaim property after it's been lost due to unpaid taxes or a foreclosure. This right provides a window of opportunity to regain ownership.

Surplus funds are the extra money left over after a tax sale when the sale price exceeds the taxes owed. It's crucial to know about them because these funds might belong to you.

A foreclosure auction is a public sale of a property after the homeowner fails to make mortgage payments. It's the final step in the foreclosure process, aiming to recover the lender's losses.

A tax lien certificate sale is when local governments sell the right to collect unpaid property taxes to investors. This can be an avenue for investment but comes with risks.