BackTax Lien, Escrow, Lost Property and Redemption

National and regional financial institutions and loan servicing companies must contend with a patchwork of state and local tax lien laws. Nelson Mullins attorneys work with clients to make these unique state and local issues less difficult to navigate, operate in, and understand.

Financial institutions can be subjected to substantial losses and significant adverse liability when collateral real property is claimed by state and local authorities. A loss at tax sale can lead to problems with borrowers and investors, including litigation - especially if the financial institution was responsible for satisfying all tax obligations pursuant to an escrow arrangement established by the mortgage or deed of trust. If the financial institution in question is the holder of the subject loan and the property was lost as the result of acts or omissions on the part of a borrower, the institution may still have an unsecured loan or a non-performing asset. Even if all goes well, a financial institution or loan servicing company may still need advice concerning tax laws that differ from state to state, county to county.

The Nelson Mullins Tax Lien, Escrow, Lost Property and Redemption Group has streamlined a process to mitigate these risks and help financial institutions and loan servicing companies avoid losses. We represent financial institutions by, among other things, monitoring targeted geographical areas to identify these risks before they create an actual threat of loss or exposure to liability. We also represent national and regional financial institutions in efforts to redeem properties that have been sold at tax sale, to challenge the substantive and technical aspects of a sale and/or foreclosure in an effort to recover properties, and to negotiate with lien purchasers to reacquire properties and reaffirm the financial institution’s security interest. Moreover, we work to identify the root cause of a loss and, if possible, provide advice and counsel that will help correct the issue and prevent reoccurrence.

Our attorneys appreciate the risks that financial institutions and servicing companies face when tax lien issues arise. We also appreciate the time-sensitive nature of these matters. Equipped with knowledge of the tax lien laws and the resources of a dedicated team, our attorneys are able to expedite the handling and ultimate resolution of these matters.