How does a person buy a house that has a tax lien against it?
When you have enough cash saved up for you to purchase a house, there are no restrictions that won't allow you to purchase the house; however, even though you purchase a house that happens to have a tax lien on it, you are taking a big risk in regards of your newly owned property. A tax lien means the property owner (former or current) failed to pay certain taxes, so the government filed a lien on the property that can only be removed when all delinquent taxes, fees, and penalties are paid in full. The tax lien placed on the house gives the government the power to foreclose on the property and force the sale of the property in order to be able to pay off all taxes brought on by the lien. Keep in mind that it does not matter who is living on the property at the time the government decides to foreclose, further increasing the risk when you purchase a house with a tax lien on it.