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Florida Court Finds B Of A Can Not Foreclose On Property Which Has Existing IRS Tax Lien

Today's fraudclosure (remember that?) court ruling of the day comes once again from Florida, where in the case of Merrill Lynch Credit Corp vs Karin Lenz (Southern Florida case 09-60633) courtesy of yet another massive fumbled mortgage note discovery process, Judge Marcia Cooke has found that Merrill was not allowed to foreclose on a property that had an IRS tax lien on it, that a tax lien is found to have priority over a mortgage, and that in a nutshell the (presumed) mortgage servicer does not have standing to foreclose when the IRS is involved and demands its pound of flesh.

This will be the latest cog rammed right up the wheels of the foreclosure process, as another hundred thousand or so mortgage will now likely be derailed as the IRS seeks to recoup tax revenues in a way that implicitly impairs banks, and further delay foreclosures, now that there is affirmative case law precedent.

The key part from the Omnibus motion:

http://www.zerohedge.com/article/court-finds-bank-america-ca...

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Thats really nothing new

Seen it done to many businesses before especially when the owner doesn't fork over the with holding tax!

Fraternal twins...

federal reserve and the IRS. One is the counterfitting arm and the other is the collection arm. The collection arm has just expanded its collecting capabilities.

This is not a good thing

Right now in most states, the IRS has to get to the back of the line when it comes to taking your property. In this sense, your mortgage offers some protection against IRS seizures. Moving them to the front will make things worse, not better.

When Extortionists and Fraudsters Collide

The plot of the great American financial fustercluck continues to thicken each day. So glad we all get to be stuck somewhere in the middle this SNAFU.

Since the IRS is just the Fed's extortion arm...

this is deliciously ironic.