InnoVest Resource Management's Foreclosure Forum

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

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Don't let an IRS lien bother you. Posted by Ward-CA- on October 16, 2001 at 6:51 AM In Reply to: Should IRS lien stop me? posted by Eric - CA on October 15, 2001 at 12:45 AM : Property I am interested in has an IRS lien. Question : I assume the IRS right of redemption for the 180 days means I cannot sell it for at least that long, correct? : Can I still rent it out, etc. as if I own it. Knowing that any improvements will be forefeited if the IRS redeems. : Finally, I get my bid plus interest (at what rate?) in a redemption, correct? =•=•=•=•=•=•=•=•=•=•=•=•= Eric, IRS’s Right of Redemption (ROR) after a foreclosure sale is 120 days, not 180. That means you won’t be able to resell the property for 4 months after the foreclosure sale without entering into an acceptable Offer In Compromise with IRS. You will actually own the property and hold title via a trustee’s deed right after the sale. It’s just subject to IRS’s right to redeem for the 120 days. So that means you can do everything any other owner can generally do except sell the property during the 120 days. And yes, if you are bold enough to make improvements to the property during the redemption period you run the risk of not being reimbursed for them should IRS redeem the property. If IRS redeems (very unlikely) then you get reimbursed for your winning bid, 6% interest on that sum for 120 days and recover any payments made toward any senior liens, property taxes, and insurance—minus of course, any rent you might have collected in the interim. Don’t let the presence of an IRS lien inhibit you from buying an otherwise great forclosure opportunity—it’s very rare that they ever exercise their ROR since they really don’t know when the property actually went to auction after it’s been postponed. Hope this clears things up. Follow Ups: applies to NC? michael 12:28 AM, 11/10/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Property I am interested in has an IRS lien. Question : : I assume the IRS right of redemption for the 180 days means I cannot sell it for at least that long, correct? : : Can I still rent it out, etc. as if I own it. Knowing that any improvements will be forefeited if the IRS redeems. : : Finally, I get my bid plus interest (at what rate?) in a redemption, correct? : =•=•=•=•=•=•=•=•=•=•=•=•= : Eric, IRS’s Right of Redemption (ROR) after a foreclosure sale is 120 days, not 180. That means you won’t be able to resell the property for 4 months after the foreclosure sale without entering into an acceptable Offer In Compromise with IRS. : You will actually own the property and hold title via a trustee’s deed right after the sale. It’s just subject to IRS’s right to redeem for the 120 days. So that means you can do everything any other owner can generally do except sell the property during the 120 days. And yes, if you are bold enough to make improvements to the property during the redemption period you run the risk of not being reimbursed for them should IRS redeem the property. : If IRS redeems (very unlikely) then you get reimbursed for your winning bid, 6% interest on that sum for 120 days and recover any payments made toward any senior liens, property taxes, and insurance—minus of course, any rent you might have collected in the interim. : Don’t let the presence of an IRS lien inhibit you from buying an otherwise great forclosure opportunity—it’s very rare that they ever exercise their ROR since they really don’t know when the property actually went to auction after it’s been postponed. : Hope this clears things up. 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