United States v. Peterson

GRIM, Senior Judge.

The question in this case is whether a federal tax lien against Pennsylvania real estate is divested by a judicial sale of the property on the foreclosure of a mortgage recorded after the filing of the federal tax lien. The mortgage was thus junior to the tax lien. 1

The United States here is seeking to foreclose on the tax lien under 26 U.S.C. § 7403. The defendant bank 2 has moved to dismiss on the contention that the tax lien was divested by the mortgage foreclosure and sheriff’s sale thereon and that therefore no federal tax lien remains against the property on which the…