with investors negotiating short sales, is it possible to negotiate federal tax liens? if yes, what are the chances you can pay these off at less than what is owed and what would the process be?
thanks,
ryan
If the property is being sold at a foreclosure sale, then the IRS has a 120 day redemption period from the date of the foreclosure sale (unless your state law grants a longer redemption period). If the IRS does not exercise their redemption rights, the lien “expires”, although, you may need to petition the IRS for a release of lien. If the IRS does exercise their redemption rights, they will refund you your full purchase price plus 20% interest. Best not to make any costly repairs or resell the property before the IRS redemption period has expired.
If you are purchasing from the owner, then the federal tax lien has priority over all other liens. The seller will have to work out a short sale with the IRS and his mortgage lender.
right. that is what i’m asking…if i’m working out a short sale or a purchase from the homeowner, i’d like to know if i could negotiate the lien down. from your statement it seems like you can, what is the process invovled?
ryan