Friday, November 20, 2015

Super lien holders not necessarily entitled to excess funds

There are circumstances in which a super lien holder should not automatically receive excess funds from a tax sale according to a Georgia Court of Appeals ruling in the case of DLT List v. M7.  Brad Hutchins and Allie Jett from Weissman, Nowack, Curry & Wilco explain:

A super lien is created when a creditor to a property owner redeems a property tax debt before the original owner can redeem it.  Part of the reason the creditor does this is to obtain the excess funds.  This ruling could make it less desirable for investors to attempt to acquire a super lien in the first place.

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