Forclosed Property With Tax Lein
We just recently purchased a property with a tax lein attached to the previous owner. We have been told by the forclosing lending institution that the fed IRS has 120 days to give us our purchase price and reclaim the property for tax forclosure. They also stated that although we get the purchase price back, any money invested in repair would NOT be recoverable. Does anyone know if this is true or not?
This is true. However, it is unlikely (but far from impossible) that the IRS will foreclose on the house- unless the tax lein is a large amount.
Remember that this is an opinion, not legal advice...
Chris
They sometimes do take the properties. Depends on the lien and the value of the property. Also depends on whether there is a local IRS office seems like.
The tax auctions for the areas you mentioned take place on the 1st Tuesday of the month at the respective county court houses.
Every county in Texas, by statute, has their sheriffs sale the first Tuesday of the month, regardless if it is the 4th of July, or any other holiday. Smaller counties will only have a sale every other month or every quarter because of lack of properties or resources.
What is really wild is that the mortgage foreclosure sale is ALSO the first Tuesday of the month at the courthouse. This makes for a really interesting day at the courthouse. I know in San Antonio, Bexar (pronounced like Bear) county it is a madhouse with so much going on at once. Crazy!!
[ Edited by rickpozos on Date 09/24/2007 ]
So Im new to buying tax leins...
How does this work ? Is it over rated?
Anyone wiling to teach...I willing to learn!!!
http://www.michigan.gov/dnr/1%2C1607%2C7-153-10368_11797-23142--%2C00.html
Simple answer: it depends. What state are you bidding in? In my state, the amount is bid on. Some properties go for the orginal tax owed, others go much higher. If the taxes owed are $1000 that is where the bidding begins. If only one person bids, they win. Any other bids go up in increments of $10, $100 or whatever you care to bid.
I talked to several of the bidders at the auctions during the past year and most said they had NEVER had one redeemed. In Georgia you earn 20% if redeemed. If not, you can foreclose on the property after 12 months.
Give us some more details of where you are looking and maybe you can get a better response. Best of luck.
$150 just for a list of the properties? .Wow!
$100 PER DAY registration fee? Again, WOW!
That should weed out the "looky-lous"....
That’s not all,
New law on the books, because the powers that be were having a hard time explaining how some little old ladies were losing there home to lawyers that took them for pennies. so the law now stands that when you foreclose you do not get the home, you get your money plus interest, but now you have to bid on it, and the home/land owner get what’s left, I know that is the way in some counties, it remains to be seen how it will work out in the future. The L.I. Free Press prints a list. First time I’ve picked up that paper, it also prints a divorce notice for someone in Anchorage Alaska. Last but not least there are an awful lot of families on L.I. in trouble, its sad you work all your life for a home to lose it to the tax man.
Thanks!
Wgaston14
Newkidintown is pretty sharp. I would listen to him any day. However, I would also do some verifying on my own as state laws change every year. What he says in Para 1 about deeds is a go. Paragraph 2 is also a go. However you may want to check on the interest you receive. Here in MO collectors have the option of charging delinquent owners UP TO 10% apr interest to give you on your money for taxes but not on over surplus. One county here only charges and gives you 5% apr interest and another county charges the owners 10% the day after the sale. If you are only interested in making the interest off the sale then in this later case I would go to the owners and tell them you bought their property at tax sale and try to get them to redeem it right away. Para 3 has a twist to it here in MO. If the property has renters in it you can charge them rent but if the original owner redeems the property then the rent you collected is deducted from the amount you get back at redemption. I don’t know what happens if renters have paid you more than what you paid for it. Para 4 is a different take. The county collectors here in MO that I have worked with do not notify anyone about the tax sale. However YOU must have a title search done and YOU must notify anyone with an interest in the property at least 90 days before you can “get” the property provided you have waited the required amount of time. Notice must by by certified mail and you must sign an affidavid stating that you complied with all requirement of the sale. Para 5. Even if a city had a lien against the property for demo of a building and the county sells it that lien is extinguished. Only liens that I know of that survive the tax sale are IRS liens and I have heard something about them being voided after so long a time but have never found out if this is true or not. Each state is different so do your research and read your state statutes. Its nice to get info from people here on the forum, there’s some pretty smart people out there but you do need to verify everything. Laws change and it’s your money. NewKid. Your smart, your sharp and I would listen to you any day but I do believe you would agree that verifycation is important.
Thanks. Very informative and helpful and should help a lot at the tax sale this year.