IRS Tax Lien
Not sure i am in the right Forum here.
I have a property that i am trying to purchase that is about to go into forclosure in a few days.
1st question is: will most lenders slow the forclosure process if there is a cash purchase aggrement on the table?
2nd question the seller has a IRS personal tax lien on the property, when and if i purchase the property It will only be for what he has owed on it. He just wants out. Will the tax lien be removed at the sale?? It is a complete gut job that is needed. ARV is around $120K with $30K in renovations . He owes $40K
Any sugestions would be great. Going to meet him in the morning first thing.
Thanks
The tax lien is for personal taxes. Last time i talked with the seller he owed the IRS around $185K. So if i am understanding that meens if i purchase the property fix it up and sell it al my profits would go to pay his taxes?
Appreciate the info, It sounds like this one could get a bit complicated with such little time left.
Thanks for the advise. I just talked with IRS agent who said to Run Also. Putting my sneakers on.
Thanks Again.
I kind of agree maybe you should pass on this one. To much to chance with the IRS, unless you can have the owner talk to a tax attorney and work something out with the IRS to save the property for you.
[addsig]
Yes make sure you have insurance in place and file the paper work with the court. Then usually you have to pay the sheriff to kick them to the curve. The price of this can very, so check with the sheriff.
[addsig]
You might look into acquisition of notes secured by trust deeds (or mortgages). I used to buy and stucture purchases that had very high yields ( most were over 30%) , but I did this when interest rates were higher some time ago.
There are certainly risks involved and, in my opinion, due diligence on a note purchase is more extensive than for property purchase. There seems to be a market for short term loans where there is plenty of equity and people are willing to pay very high interest rates for a short period of time.
You can certainly look at posts on the tax lien forum to learn what you can. My sense is that there is much competition for these. There is a person on TCI who is over somewhere near you who buys tax liens in Oklahoma with the idea that he selects them where there is reasonable chance of owning a property. His name is Ron Starr so you can look at his posts if you are interested.