InnoVest Resource Management's Foreclosure Forum

Discussion Board Foreclosure Training Title Holding Trust Speaking Schedule Foreclosure Codes 50 State Foreclosure Basics 60+ Yrs Interest Rates News & Trends FAQ Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: IRS tax lien sale Posted by Ward-CA- on August 31, 2001 at 6:23 PM In Reply to: IRS lien sale posted by Eric - CA on August 31, 2001 at 11:53 AM : I am planning to buy a property at auction which is being sold under direction of the court due to unpaid IRS taxes, unless someone points out something I am missing and a reason not to buy it. : I researched the title and there are no trust deeds outstanding on the property, nor any debt that I can find recorded. : There are liens for over $11 million in unpaid IRS taxes and a small amount of property taxes. : My concern is that if I buy the property, the proceeds of which are to be used to satisfy the tax debt, will this lien continue to exist on the title forever due to the fact that its a tax lien and this will clearly be insufficient to cover the amount owed? or since it is being sold to help satisfy this debt, does that end the lien by the IRS? I read some other posts and it seemed that the IRS liens stay until paid or for 10 years. If so, then this would clearly be a bad deal. : Assuming I get it free of the tax lien, it also notes that if the sale price is not sufficient, that a deficiency judgement will be entered on it behalf. I assume this will be against the tax dodgers and will attach to any other real estate they may own and not my property which I just acquired. : How do they come up with a minimum bid? Anyone know, clearly it won't be the $11m owed. =•=•=•=•=•=•=•=•=•=•=•=•= Eric, IRS conducts two forced sales of real property. One is called a redemption sale and the other is their tax lien sale. Let’s talk about the IRS tax lien sale. When IRS auctions off the tax debtor’s real property to garner money towards the their delinquent taxes the winning bidder won’t receive marketable title to the property nor possession of the property for 180 days following the sale. That’s because the tax debtor has a 180 day Right of Redemption. Since the taxpayer might redeem their title in the 180 days, they don’t have to move out nor pay rent, etc. during that time period. The title you receive will ultimately be subject to any liens recorded senior to IRS lien(s). Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I am planning to buy a property at auction which is being sold under direction of the court due to unpaid IRS taxes, unless someone points out something I am missing and a reason not to buy it. : : I researched the title and there are no trust deeds outstanding on the property, nor any debt that I can find recorded. : : There are liens for over $11 million in unpaid IRS taxes and a small amount of property taxes. : : My concern is that if I buy the property, the proceeds of which are to be used to satisfy the tax debt, will this lien continue to exist on the title forever due to the fact that its a tax lien and this will clearly be insufficient to cover the amount owed? or since it is being sold to help satisfy this debt, does that end the lien by the IRS? I read some other posts and it seemed that the IRS liens stay until paid or for 10 years. If so, then this would clearly be a bad deal. : : Assuming I get it free of the tax lien, it also notes that if the sale price is not sufficient, that a deficiency judgement will be entered on it behalf. I assume this will be against the tax dodgers and will attach to any other real estate they may own and not my property which I just acquired. : : How do they come up with a minimum bid? Anyone know, clearly it won't be the $11m owed. : =•=•=•=•=•=•=•=•=•=•=•=•= : Eric, IRS conducts two forced sales of real property. One is called a redemption sale and the other is their tax lien sale. : Let’s talk about the IRS tax lien sale. When IRS auctions off the tax debtor’s real property to garner money towards the their delinquent taxes the winning bidder won’t receive marketable title to the property nor possession of the property for 180 days following the sale. That’s because the tax debtor has a 180 day Right of Redemption. Since the taxpayer might redeem their title in the 180 days, they don’t have to move out nor pay rent, etc. during that time period. : The title you receive will ultimately be subject to any liens recorded senior to IRS lien(s). 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

Copyright © 1997-2001, InnoVest Resource Management

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455