IRS Seizures
I’ve learned that a property is being seized by the IRS due to the individuals failure to pay taxes. Does anyone know what the process is when IRS seizes property due to failure to pay taxes? How and when does the property go up for sale or auction? How can I find out when it would be auctioned? And approximately how much do they usually put the property up for sale? I’m not sure if these are the right questions to ask, but it would help in understanding the process. If you can add anymore information that would be beneficial I would be greatly appreciative. Thanks.
IRS seizures may be cured by the original titleholder for 180 days from seizure for original lien amount + penalties + interest...you'll need to track this timeline, get competent counsel from a tax attorney and be certain you're buying with sufficient equity-cushion to compensate for hassel-risk.
The best thing is to call the IRS and ask them when the property will be put up for sale. They will give you all the particulars.
The thing you must understand is that an IRS lien does not get any special priority priveleges (like real estate tax liens). It takes its place in the recording timeline. This means that you l take the property "subject to" all senior filings-first mortgage, second mortgage, etc. etc. If you bought the property you would be liable for all these encumbrances.