IRS Seized Property Auction
There is a residential lot that the IRS is offering for auction that I am interested in. Has anybody purchased a property from the IRS this way? The property has several financial encumbrances including back property taxes, state revenue taxes, and IRS back taxes which total over $35K. Does this mean that if my bid on the property gets accepted, that I am responsible to pay for these encumbrances? Or, does it mean that the proceeds from the successful bid will go to pay off these encumbrances? If this is the case, what happens if the bid price is not enough to pay everyone that is owed?
Make sure you know what you are bidding on. I just resolved a matter that saw a woman bid on what she thought was property... when in fact she was bidding on the tax debtor's interest in the property.
That interest was subject to a pending mortgage foreclosure... and other interests in title.
Don't underestimate the importance of due diligence....
[addsig]
you will need to check with the irs for how they are going to handle the auction. i know how they usually sale but check with them to be safe. they make their own rules and everything is subject to change......km