Can You Short An IRS Lien Before Foreclosure Auction?
Can you short an IRS lien before Foreclosure Auction?
Hello All,
In Florida, the property will auction in Feb 07 and has a huge IRS lien on it
Has anybody had success with negotiating with the IRS before the Auction to get the lien reduced?
If so how much of a discount?
If so I would pay the IRS and reinstate the 1st mtg and buy “subject to”
I would also be a buyer at auction and wait the 120 days and see if the IRS would redeem
Info:
1st mortgage: 230k
ARV: 340k, minimal repairs
IRS Liens: 310k
Owner vacated, confident I can find him
David
Hello All,
In Florida, the property will auction in Feb 07 and has a huge IRS lien on it
Has anybody had success with negotiating with the IRS before the Auction to get the lien reduced?
If so how much of a discount?
If so I would pay the IRS and reinstate the 1st mtg and buy “subject to”
I would also be a buyer at auction and wait the 120 days and see if the IRS would redeem
Info:
1st mortgage: 230k
ARV: 340k, minimal repairs
IRS Liens: 310k
Owner vacated, confident I can find him
David
Comments(0)
The rules for an offer in compromise have changed. My wife, a CPA, has on more than a few ocassions helped me out with ss deals involving IRS liens, and ss clients needing to prepare current tax returns, or
from years past.
Sure, negotiating an offer in compromise is possible.
Pro,
can you negotiate with the IRS in time for the sale, they are so sloooooooooow , it is ridiculous. If so, how would you go about that. The OIC is a complicated process.
thanks for the answer
I doubt there would be sufficient time... much depends on what type of lien it is.
Bargain,
Thanks for the response
How do you (as a 3rd party) get a property released from an IRS Lien??
Is it possible?
As long as you can demonsrate to the IRS that the liened Taxpayer is getting NOTHING , no benefit, from the release of lien, the IRS MAY release the lien as it applies to that property. We have done it, but the lien remains intact against the owner. We have never paid any money, just a little sweet-talking.
I have never tried to get a discount and pay off a lien though.
And after buying dozens of properties with IRS liens at the Courthouse, I have NEVER even heard of the IRS exercising their 120 day right of redemption.
Lenders are alert to the possibility, though. Lenders will bid the full amount of their judgment when an IRS lien exists, not their nominal $100.00.
[addsig]
BK,
Thanks again
I appreciate your time and effort on this topic
This is highly likely the only asset this defendant owns and the most likely way the IRS will ever see a dime
Do you agree?
Maybe not, maybe the IRS will garnish wages in the future or some other course of action
I’ll bid and if it gets redeemed I get my funds back
So I’m out my capitol for a while, might loose a little in interest
Nothing ventured nothing gained!
Call a small bank that is local to where the property is located. If anyone has interest, they should.
[addsig]
Thanks for the input above.
I am now thinking of financing the deal with credit cards at a low fixed interest till the balance is paid off. Does anyone think this is not a feasible approach and if so why?
Any other ideas or recommendations on financial institutions that finance these amounts?
Thanks.
JS.
Purchase with cash, hard money or credit cards. Do your repairs, get a new appraisal and finance as a re-finance instead of a purchase.
The credit card purchase is fine, just purchase on the cards, do repairs, reappraise, get a loan and resale it and pocket the profit.