Question about IRS foreclosure - Posted by Wayne

import · September 25, 2006, 9:33pm

Posted by Wayne on September 29, 2006 at 08:20:32:

nfm

import · September 25, 2006, 9:33pm

Posted by Wayne on September 25, 2006 at 21:33:15:

I recently found a property that is due to be foreclosed by the IRS, and the notice said that the property was still subject to existing liens.

Is this correct? My understanding was that tax liens (property, then income, in that order) took a first-position lien on a property. What am I missing here?

Thanks
Wayne

import · September 28, 2006, 10:03pm

Re: Question about IRS foreclosure - Posted by Bill H

Posted by Bill H on September 28, 2006 at 22:03:25:

IRS Liens have the priority in which they are recorded. They can be in any position, 1st, 2nd, 3rd, 4th, etc.

If the IRS has chosen to foreclose then their lien forecloses just like any other…all senior liens remain…all junior liens will be wiped from title.

PLUS if you visit their website you will find they already have a “Guaranteed Bidder” for the property.

Someone has already signed up with them to buy the property for the amount of the IRS lien and will take title subject to the senior liens.

Yes, tax liens, with the exception of IRS Tax Liens, take precedence over other liens. The IRS has an automatic 120 right of redemption period after any foreclosure in which they are a junior lien. Very few, if any, other liens have that right.

Good Luck,
Bill H