IRS tax lien - Posted by Lydia

Real Estate Investing Real Estate Law
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Posted by Bill H on May 20, 2004 at 20:17:11:

If you get the property pre-foreclosre…YOU…inherit the IRS lien and it will remain until you do somethig to satisfy the IRS.

If the property goes through foreclosure the IRS has an automatic 120 day right of redemption period. During this time they can post it on their website and ask for guranteed bidders, sit it out, pass it up, wait you out, or do nothing and let the time expire.

And; if you purhase it as the foreclsoure sale, during the 120 days the lien is active and in full force and effect. They being a Federal Lien have certain rights…one of which is the 120 days. If you make improvements and they elect to exercise their rights —and sell it — you lose the value of your improvements. They will not take them into consideration. They just want the $$$.

Good luck,
Bill H

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IRS tax lien - Posted by Lydia

Posted by Lydia on May 19, 2004 at 22:03:21:

Property needs several thousand dollars worth of work, but after repaired will be at least $115,000. $85,000 is approximate balance owed. Two months behind, in Pre-foreclosure. IRS tax lien is $100,000. What are the chances the IRS will release the lien, and is it done before or after closing?

The owner knows he will get nothing from the sale, no matter what. I just don’t want to “inherit” a lien that exceeds the value of the property.

I have read all the IRS lien posts that showed up on a search, but I’m still not clear.

Lydia