Pre-foreclosure With Federal Tax Leins

Can anyone give me any advice on doing a pre-foreclosure with federal tax leins. How can I find out if the IRS will pursue action or if they will allow the sale? Who, if anyone, can I contact with the IRS about this matter? The retail value on the house is $32,000 to $35,000 and I can get it for approximately $13,000 to $14,000.


The IRS has the right to take back the property 120 days after the HO sells the property, but according to Lou Brown that doesn’t happen often today.

You will need to contact your regional IRS office and find out who to talk to about this. Try to negotiate for them to release the property from the house. This may entail some $$$$ :-.


The lender that is starting the foreclosure process would have to notify the IRS of the foreclosure at least 30 days prior to avoid their right to comeback during the 120 days afterwards. Check with the trustee to see when they plan on notifying the IRS. If you reinstate the loan the lien will remain. It is unlikely that they will take any action but the lien will still have to be satisfied to be released. The 120 day figure is only after a foreclosure.

On one house it took us a year and 3 appraisal to prove that in its present condition there was no equity from the offer price. The IRS still got money but it came from the home owners funds.