Why does this type of foreclosure take longer than an in rem foreclosure by a municipality?
Municipalities may foreclose under a different statute for in rem foreclosures. In rem foreclosure is less costly and much faster because all service is done by mail, and there is no Order Setting Time or 30-Day letter. In rem foreclosure averages just three or four months. • What happens if there is a federal IRS tax lien on the property? Municipal tax liens have priority over federal IRS tax liens, so the foreclosure proceeding will eliminate the IRS lien. However, any time that the federal government holds an interest in the property, a sheriff’s sale must be scheduled at the end of the foreclosure proceedings. • What happens if the FDIC (Federal Depository Insurance Corporation) holds a mortgage on the property? Municipal tax liens have priority over all types of mortgages. However, written consent must be obtained before foreclosure can be completed against the FDIC where it holds a mortgage on the subject property. In our experience, such ‘consent’ is never denied, but it always
