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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Info too sketchy... Posted by Bill H on January 26, 2010 at 5:05 PM In Reply to: Info too sketchy... posted by Rick, the Probate Guy on January 24, 2010 at 10:54 AM : Most (but not all) posters here concern themselves with CA foreclosures which are normally non-judicial. : Since you make reference to a Sheriff's Sale without telling us what State (or County) this matter is in, I'm going to assume that you're in a State where judicial foreclosures of mortgages are the norm. Occassionally we'll see a CA Sheriff's sale of a Writ of Execution, but they're rather rare today. : Of course, it really doesn't make much difference as the I.R.S. will treat this matter pretty consistently, regardless of State. : If the I.R.S. lien is junior in priority to the foreclosing creditor's lien, then the tax lien if wiped OFF, subject to their 120 day right of redemption. IRS is unlikely to make a play for that money unless there's significant equity AND they are confident that a suitable buyer/bidder would step forward should they go to the trouble of excercising their R.O.R. and pursuing a sale thru their own system. : Even with lots of equity, IRS can be dissuaded from further action should there be certain facts about the property that scares them off (lead paint, taxpayor who is in an active, private armed militia, etc.). : Let us know what you decided and what action you finally take. Rick: Here's a hypothetical to chew on: Henry buys the property at the sale and it is a 1st TD foreclosure. The IRS now sees the property as "Free and Clear" as they wer in 2dn and lesser positions with their 8 liens he mentined. Henry was aware that the IRS had redemption rights. Have not had any expereince in this area...but...what if the IRS puts the property on their website under seeking guarnanteed bidder and someone steps up to pay the IRS liens. Where would Henry stand? Is the IRS obligated to repay him? He was fully aware of their lien and the fact that it would move into 1st positions as a result of the sale. Just sitting here in MS and this strange little thought went throuh my mind as the BASS are NOT biting at all today. No Mosquitoes either but BASS bites are a lot more fun than "Skeeters." Bill H Follow Ups: I dunno... Rick, the Probate Guy 9:12 AM, 01/30/10 (1) Re: I dunno... Bill H 2:33 PM, 01/30/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Most (but not all) posters here concern themselves with CA foreclosures which are normally non-judicial. : : Since you make reference to a Sheriff's Sale without telling us what State (or County) this matter is in, I'm going to assume that you're in a State where judicial foreclosures of mortgages are the norm. Occassionally we'll see a CA Sheriff's sale of a Writ of Execution, but they're rather rare today. : : Of course, it really doesn't make much difference as the I.R.S. will treat this matter pretty consistently, regardless of State. : : If the I.R.S. lien is junior in priority to the foreclosing creditor's lien, then the tax lien if wiped OFF, subject to their 120 day right of redemption. IRS is unlikely to make a play for that money unless there's significant equity AND they are confident that a suitable buyer/bidder would step forward should they go to the trouble of excercising their R.O.R. and pursuing a sale thru their own system. : : Even with lots of equity, IRS can be dissuaded from further action should there be certain facts about the property that scares them off (lead paint, taxpayor who is in an active, private armed militia, etc.). : : Let us know what you decided and what action you finally take. : : Rick: : Here's a hypothetical to chew on: : Henry buys the property at the sale and it is a 1st TD foreclosure. : The IRS now sees the property as "Free and Clear" as they wer in 2dn and lesser positions with their 8 liens he mentined. : Henry was aware that the IRS had redemption rights. : Have not had any expereince in this area...but...what if the IRS puts the property on their website under seeking guarnanteed bidder and someone steps up to pay the IRS liens. : Where would Henry stand? Is the IRS obligated to repay him? He was fully aware of their lien and the fact that it would move into 1st positions as a result of the sale. : Just sitting here in MS and this strange little thought went throuh my mind as the BASS are NOT biting at all today. No Mosquitoes either but BASS bites are a lot more fun than "Skeeters." : Bill H [ 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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