IRS 180 Day Redemption
IRS seized and sold a property owned by Mary for $50k to John. The property is worth $100k. Mary owes IRS $200k. If Mary excercises her right to redeem she must pay $50k plus 20%APR. But since she still owes IRS $150k, IRS will still have a $150k lien.
Question: Assume there are no other liens: If Mary now deeds the property to her brother JIM and he redeems will he have clear title in 180 days? 
At first blush. if she transfers title and Bro redeems-that should work. You said assum that there was no other liens, right?
Mary now owes $150k+ interest to the IRS and Bro ownes the house.
Something I saw happen to one owner, was an IRS lien on a property which was sold and subsequently redeemed by the owner. No sooner than that was concluded then the IRS slapped another lien on the property and again sold the property. That's playing hardball.
JIM711-------------------
Interesting question. I don't have the answer to it. My inclination is to say no. The lien will probably still be on the property when it is deeded away and now there are two people who have a reason to pay on the lien: Mary, because it is in her name, and the property owner, because it still encumbers the house.
However, I am not an attorney. And I have heard of no experiences of action like this. The response of SammyVegase suggests that the IRS would start to try to sell the house again.
Good Investing************Ron Starr***********
Hello,
First, this is NOT legal advice. Get a Lawyer. I am NOT one.
My friend bought a piece of vacant land from an out of state owner. Later we found out that he had an IRS lien.
I called a large Title company and they told me they wouldn't even worry about it. They would even issue title insurance, for financing. This is of course assuming there are no liens attached to the property, or in my friend's name.
She paid cash for it and wanted to get some walking money. Seemed like she owned it for 6 months or a year at that time. She changed her mind on the financing so I'll never know for sure.
YMMV,
Steve
Ok I also am not a lawyer.
If there is an IRS lein, and the property is sold at a tax/mortgage sale, there are a couple of possibilities.
1. If the property was sold at an IRS tax sale, then their leins are free and clear, poof.
2. If the property is sold at a legal foreclosure or local gov tax sale, the IRS has 180 days to redeem the property, if they choose.
Many times they will not choose, or not be able to redeem the property. If you are really worried you can ask the IRS to forgoe their leins for a small amount of money.
Example.
I purchased a property at a local county tax sale. I paid 120k for the property. The property was worth 210k, and only needed 30k work.
I contacted the local IRS folks and I was able to purchase their right of redemption for 10k. Was it worth it? To me it sure as heck was, I now can start working on the property 4 months earlier and I don't have to worry about them taking the property out from under me.
[addsig]