I have a property under contract that was about to be foreclosed on. When doing the title search, I found out that the property has a Federal Tax Lien on it. The property owners said that they were never notified of the lien and had thought that all liens had been lifted. The property owner is not going to receive any cash from this sale, I am merely taking over their ownership. Does anyone have any ideas about how I should go about getting the lien lifted other than paying the $7000 to the IRS?
Notify your local IRS office and tell them what you are doing and they will send you paperwork to have the lien lifted from the property. It may take a while depending on the office…they will send you a copy of their Authorization to release info and form for the sellers to fill out. It is quite simple but could take time. Let them know ther is know money going to the sellers and the house is being foreclosed on…they may or may not speed up the process…
I bought a duplex once and it had a $500,000 IRS lien. The price was $7500 on the duplex. The title company got a release for that property by paying the IRS all the proceeds. Since your seller is getting zero you too should be able to get a release for zero. The sellers of course will still be liable for the payment unless they file for a compromise
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737