Whats The Deal With IRS Liens On Tax Deeds?
I know the IRS liens survive the sale and that the IRS has 120 days to collect (i think). What I was wondering is if any of you out there ever gamble on these properties?
The auction this month has at least 5 houses with IRS liens, and I always stay away from them.
Arent they just a big gamble?
Is there a value that the house would have before the IRS would bother to take it?
Anybody have any feedback or experience with buying these kinds of homes?
It is appreciated! Thanks, Kara
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Oh so if they take it, they would pay back any monies paid? I thought they just took it...ok thank you.
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I have never had the IRS redeem a tax sale prop. They rarely (almost never) redeem, especially this time of year. If they do redeem then they will pay your cost, so the only gamble you have is the cost of the money for the 120 days.
good luck
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I have seen a couple places here where it was mentioned that the IRS has 120 days to redeem a property. I know there are tax lien and tax deed states. In a tax lien state (Missouri) the original property owners have one year to redeem the property from the tax sale. My question is – does the IRS have an ADDITIONAL 120 days after the one year redemption period. Or do they have eons to redeem. Does their right to redeme EVER go away. Is there some place I can go and read up on this information about the 120 day IRS redemption?
Part 2. I purchased a property from the original owner that had been sold at tax sale but the redemption period had not expired. The IRS had a $ 16,000 lien against it. I paid $3,800.00 for the property 6 years ago and have rented it out for $ 350.00 month ever since. So if the IRS comes and takes it away I have only made money. If I buy right I don’t worry about the IRS liens.
Check your state laws. If someone died without a will depending most likely the estate will have to be probated
If there is no will, the title company will have to have an affadavit of hiership. This will give the property a new owner. You will then have to get a deed from the new owner. This can all be done by the title company or by you. Check with the title co. for the exact details that they need in the affadavit of hiership.
As far as paying any taxes, NO. Dont do anything until you can find out who are the hiers of the property and if they are willing to sign.
Normally, the IRS redemption period refers to foreclosure or other taking of property owned by someone with an IRS lien against them.
When the lawsuit is filed, the IRS, like the defendants and other lien holders, is served notice by the Plaintiff that the property is in default and will be sold. After the sale, the IRS has 120 days to redeem the property....that is, to refund the purchase price and take ownership.
Unless you are the foreclosing Plaintiff, there is no reason to contact the IRS.
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