I have a genreal question for all who have had this experience. If i purchased a tax lien sale property that was just one that the original debter had several of, and there was an IRS lien set against him, what luck has anyone experienced getting the IRS lien released from your property since the original debter still had property for the lien to encumber. Am i just wishing in a well or has this been successful? Would the IRS let thier 120 days expire? What do you guys think? :help
So this property has both a property tax lien and an IRS tax lien against the property on behalf of the owner and the property is being sold as a tax lien sale? Is this correct?
There are so many properties out there available for sale I don’t think I would jump in and take the chance, the IRS may end up letting their 120 day period expire, but if they don’t then depending on how much this guy owes they could look for full payment? Just walk away and find a safer property without liens!
My experience is with short sales, not tax lien sales. However, I believe the concept is the same. They can be removed.
What position is the IRS Lien. Your tax lien sale is first…what the IRS will or will not do depends on their position in the chain of title and equity.
If they elect to exercise their right of redemption they will fall into their place in the chain of title. They do not move as a result of a tax lien sale.
SO: if they are second, third, etc., ONLY if there is lots of equity is there any risk IMO that they will exercise their right of redemption.
You can correspond with them and request a release of lien.
OR: you can wait out the 120 days, do your quiet title and claim the property.
yes the property has both IRS and property tax liens. The IRS was filed 2006 and the property tax lien and proposed sale is this year, so that tells us who is superior.
And your all probably right, I should pass the headache and watch for another. It was a nice property but as we all know there will ALWAYS be others. I was just dat dreaming again…or is that thunking creatively about the possabilities :biggrin
PLEASE Do Not Show Your Lack of KNOWLEDGE quite so CLEARLY.
Apparently you know nothing about tax lien and tax deed sales.
Taxes ARE THE MOST SUPERIOR LIEN AGAINST real property.
Your posting DOES NOT SHOW ANYTHING about the chain of title!!!
Do you know what chain of title is?
YIKES…where are YOU coming from?
What are your smoking?
Why are you trying to do this business with so little knowledge of it.
FIND OUT WHO IS WHERE IN THE CHAIN OF TITLE AND REPORT IT BACK HERE.
Otherwise…you are on your own.
Well, let me see…actually a IRS lien is only an encumberance lien filed against the property owners and thier assests thereby preventing transfer of clear title. In order to receive clear title the lien must be settled.
There is but one 1st mortgage which will fall second to the property tax deed foreclosure and be whipped clean if the mortgage company does not poni-up the tax lien settlement,…assuming they were properly served the notice of the suit.
After the tax sale the IRS can look for a garruntee minimum bidder than excersise there right to redeem and auction the property starting at the garruntee minimum bid amount for the settlement of the existing encumberance known as the IRS LIEN. So they are truly never on the chain of title until they exercise their redemtion rights in variuos manners.
You see I never really deal with the tax deed sales of properties. I am usually over purchaseing wholsale.
Now to your basic question. If it were me I would proceed with the tax lien sale, and if I was the successful bidder wait for maturity. Then do nothing for at least 120 days until the IRS Right of Redemption has expired.
The main concern then becomes…was the IRS properly notifired.
Then you could proceed with quiet title or go to this link:
They will for a fee of $750 upfront tell you if they will insure…if so withing 90 days they will ask for further fees and then give you title insurance for your sale.
What if the individual did something within the 120 days period? Will it be forfeited?
When dealing with an IRS Lien and the 120 day period, the goal, like with options is to try to not set off the Due on Sale Clause (IE raising the awareness of the property!). So if you are acquiring a property with an IRS Lien, especially through a tax foreclosure, you should probably pass on it. Unless you want to start working with the IRS.
Leonard if you improve the property and the IRS decides to exercise their right of redemtion they will not pay you for the improvements…yes…it is forfeited.
Ashlon…there is no reason not to buy a tax lien that has an IRS lien also…as I said before Taxes are the most superior lien against real estate.
Buy the tax lien…wait the 120 days…do quiet title and if unopposed then claim the property.
If the IRS exercises…they will put it on their website and if sold…you get your $$$ plus minimal interest back.