I’m looking to short sale a property. The homeowner hasn’t paid taxes for two going on three years. How do I get these leins removed or discounted?
Just contact your local IRS office. There are forms etc to fill out. I have not actually done one myself but we bought a duplex for $7500 where the seller had $500,000 IRS liens. Once they were satisfied the seller was getting no money and there was no equity the released the lien. In this case the just released the lien on this property. I believe they may have gotten the proceeds of the sale.
Hope this helps, sorry I do not know more here
You mentioned that the IRS may have received the proceeds from the sale, but in this case the sale I negotiate is to pay off the 1st mortgage holder. There are no “proceeds” that could possibly go to the IRS. I will surely try what you have said.
Has anyone had an experience with IRS leins in the “pre-foreclosure” life-cycle of a house?
PS - Tedjr, I read about your duplex example in another thread before I posted this question. I thought there was a typographical error and that ‘tooooo’ many zeros were typed on accident, obviously not. WOW! How did you find such an incredible deal?
Hello,let me give you a word of caution about IRS tax liens. You better hope that there is enough money bid at the auction(foreclosure sale)to cover the lien. If there is not, the IRS has a 120 day redemption period. This means that after the new owner has taken possession of the home , the IRS has the right to(up to 120 days later) pay that owner what they paid at the auction, and take possession of the home. That means that any improvements that you put into the home would be lost.