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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Foreclosures With Federal Tax Lien? Posted by LarryG on December 05, 2009 at 7:47 PM I traveled to my recorder's office to research the title on a foreclosure sale property that had an opening bid posted of $14,600. What I found was a 2008 federal tax lien on the property for $27,600. This was on the same day that the sale was to be held so I did not have the time to research the problem before the sale was held. Briefly, this is what I have learned on the subject from different sites, verified on the IRS web site www.irs.gov/irs/2007-36_IRB/ar17.html: (But I still have a BIG question) Assuming the debt being foreclosed on is senior to the junior fed tax lien: 1) The lender foreclosing must give 25 day notice to the IRS of the sale and receive their "consent" to have the sale in order for the junior tax lien to be wiped out. 2) If the IRS has been notified and given consent, the IRS has a 120 day right of redemption after the sale and, if acted upon, the buyer at the sale will be reimbursed the purchase price by the IRS plus interest. 3) If the IRS does not redeem within the 120 days, the tax lien is gone for good. 4) If the IRS has not been notified and given consent, the tax lien is still there. The Question: As a possible buyer at a sale, how can I know that the the IRS has been given the proper notice and given consent? Is it always done by the Trustee as a requirement for preparing a foreclosure sale on a property with a tax lien? Will the IRS respond to telephone call about this? I contacted the Trustee (a law firm) holding the sale and they said they would not give out any info about the title of a sale property (standard reply). It seems important before bidding that I get something in writing from the lender or Trustee that the IRS has been satisfied or some assurance from the IRS direct. Any experiences with this question would be appreciated..... LarryG Follow Ups: Re: Foreclosures With Federal Tax Lien? Kawika 9:37 PM, 12/11/09 (0) Looking for problems that aren't yours... Rick, the Probate Guy 10:32 AM, 12/06/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : I traveled to my recorder's office to research the title on a foreclosure sale property that had an opening bid posted of $14,600. What I found was a 2008 federal tax lien on the property for $27,600. This was on the same day that the sale was to be held so I did not have the time to research the problem before the sale was held. Briefly, this is what I have learned on the subject from different sites, verified on the IRS web site www.irs.gov/irs/2007-36_IRB/ar17.html: (But I still have a BIG question) : Assuming the debt being foreclosed on is senior to the junior fed tax lien: : 1) The lender foreclosing must give 25 day notice to the IRS of the sale and receive their "consent" to have the sale in order for the junior tax lien to be wiped out. : 2) If the IRS has been notified and given consent, the IRS has a 120 day right of redemption after the sale and, if acted upon, the buyer at the sale will be reimbursed the purchase price by the IRS plus interest. : 3) If the IRS does not redeem within the 120 days, the tax lien is gone for good. : 4) If the IRS has not been notified and given consent, the tax lien is still there. : The Question: As a possible buyer at a sale, how can I know that the the IRS has been given the proper notice and given consent? Is it always done by the Trustee as a requirement for preparing a foreclosure sale on a property with a tax lien? Will the IRS respond to telephone call about this? : : I contacted the Trustee (a law firm) holding the sale and they said they would not give out any info about the title of a sale property (standard reply). : It seems important before bidding that I get something in writing from the lender or Trustee that the IRS has been satisfied or some assurance from the IRS direct. : Any experiences with this question would be appreciated..... LarryG : [ 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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