I Hold First Second Mortgages IRS Ahead Of Me
I am starting the foreclosure process on my second mortgage. The IRS has two liens ahead of me. I will have to pay them. The question is this. Since I am foreclosing...do I actually submit a bid or is my first and second mortgages (plus the IRS payoff) actually my bid? I don't need to go to the auction with certified funds...my mortgages are my funds???Help. First time I have done this.
I suggest you get help from an attorney that's specializes in foreclosures on TX. As a side note, I have hard time believing you loaned money against the property that had IRS liens on it. :(
Unfortunately....it was family and we thought we were helping them. Now after delinquincy in mortgage payments of over three years (36 payments!) we have had enough! Yep...patsies for helping or trying to help. We are getting an attorney. Just trying to get information without having to pay $250.00 per hour for it! Thanks!
Have your attorney handle the foreclosure, you can't afford to make any minor error that could void the sale.
The IRS has 120 days after the sale to take the property (after they pay you back your bid) if they want it, or they have to release their lien at that point. I'd foreclose and then wait out the 120 days.
Your loan plus arrears and foreclosure costs are indeed your funds and opening bid, you don't actually need to go to the sale with more cash. If anyone bids, you'll get your amount owed, plus they will have to make payments on the (your) first, and deal with the IRS. You are not in that bad of a position, assuming there is any equity in the property. You'll end up with your cash or the property. Good luck!