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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Dealing with IRS' Right of Redemption Posted by Ward-CA- on January 09, 2002 at 6:55 AM In Reply to: Need strategy advice, IRS ROR posted by Jeff on January 08, 2002 at 6:32 PM : I recently purchased a home at foreclosure sale that has a $66k IRS lien on it. The house has mold problems that will take $10k to remediate, I'd like to put another $10k into it for remodeling and upgrading. : The bid price was $94k, market value will be $140-150k. The numbers are a little skinny but I wanted the house for a personal residence rather than a quick investment. : I'd like to get started on the remediation and remodeling as soon as possible, however I don't want to invest any more money in the property until the IRS is out of the way. : My question is, should I risk going to the IRS and requesting an offer-in-compromise and putting them on the alert? Or would it be safer to wait them out the 120 days for their ROR to expire and go from there? : Any suggestions?? Thanks! =•=•=•=•=•=•=•=•=•=•= Jeff, there isn’t much risk in approaching IRS on this house. A mold problem is something that they probably won’t want to inherit by exercising their Right of Redemption (ROR). In addition, if the house was built prior to 1978 they won’t exercise their ROR. They just don’t want to contend with the lead paint abatement problems associated with such properties. I would request an early waiver of their ROR because of the mold issue and the 1978 rule (if it applies). If they turn you down you can always wait them out for the 120 day ROR period. By the way, IRS will often take an offer in compromise for a small amount of money. So if you go that route start out no higher than $1,000 and creep up from there. They won’t counter offer your offer if it isn’t acceptable, they will just ask you to make another offer. Good luck. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I recently purchased a home at foreclosure sale that has a $66k IRS lien on it. The house has mold problems that will take $10k to remediate, I'd like to put another $10k into it for remodeling and upgrading. : : The bid price was $94k, market value will be $140-150k. The numbers are a little skinny but I wanted the house for a personal residence rather than a quick investment. : : I'd like to get started on the remediation and remodeling as soon as possible, however I don't want to invest any more money in the property until the IRS is out of the way. : : My question is, should I risk going to the IRS and requesting an offer-in-compromise and putting them on the alert? Or would it be safer to wait them out the 120 days for their ROR to expire and go from there? : : Any suggestions?? Thanks! : =•=•=•=•=•=•=•=•=•=•= : Jeff, there isn’t much risk in approaching IRS on this house. A mold problem is something that they probably won’t want to inherit by exercising their Right of Redemption (ROR). In addition, if the house was built prior to 1978 they won’t exercise their ROR. They just don’t want to contend with the lead paint abatement problems associated with such properties. : I would request an early waiver of their ROR because of the mold issue and the 1978 rule (if it applies). If they turn you down you can always wait them out for the 120 day ROR period. : By the way, IRS will often take an offer in compromise for a small amount of money. So if you go that route start out no higher than $1,000 and creep up from there. They won’t counter offer your offer if it isn’t acceptable, they will just ask you to make another offer. : Good luck. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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