IRS Liens
I am researching a number of properties for a propety tax sale (county) in CA and was wondering if anyone had any advice for researching IRS liens on a property. I could call up my title company, but I hate to bother them with all the inquiries. Also, is there a way to do this over the internet without going to the county recorders office? Thanks for your help!
many counties now have title information including liens abvailable over the internet. See if yours does, don't worry about bothering the employees, thank them and when you leave send a letter of appreciation for their help to their supervisor. They will be in your hand forever.
HouseHuntersUSA--------------
I'd suggest that you talk to the person in the tax collector's office that is in charge of the tax sale. Ask them if they sent notices to the IRS about the properties scheduled for tax sale which have an owner with an IRS lien filed against them.
Ask at the same time how they researched the properties. Was it done by a title company, a county employee, a former title searcher for a title company, etc. This may give you some hint as to how good a job was done.
If the IRS was properly notified of the upcoming tax sale, there should not be a problem with the IRS, I would guess. Although the IRS theoretically could redeem from the buyer at the tax auction, they seem to rarely do so these days. And even if they do redeem, the purchaser gets back his/her purchase price plus 5% annun for the time of ownership. Just do not sink any money into a property you buy at tax sale except what is absolutely necessary to keep it safe and protected. You can check for IRS liens after you buy a property, not before the auction, in my view.
Good Investing********Ron Starr*************
Thanks for the advice!
Ronald Starr,
Why do I wait until I have bought the property to see if it has a Fed. Lien? If I buy it and it has a lien, wouldn't I be possibly responsible for the lien then? I thought I would not bid on it if it had a Fed. lien for this reason. I know I'm probably wrong, but please explain. Rick
indicator--(MO)-----------------
You can buy a property that has an IRS tax lien against it. There is no prohibition against that. That is why you want to know the situation, though. You want to know whether that lien will disappear from the property for free or if you will have to pay for it to get off, or if it will remain on the property.
You misunderstood my advice. I was suggesting that before bidding on the property, the poster check that the IRS had been notified about the tax auction. If they are notified about the auction, then their lien converts to a right of redemption after the tax sale. That right of redemption expires 120 days later. Should the IRS redeem, the buyer at the sale would get the money back that was paid for the property, plus 5% annual return for the period of ownership.
If the IRS is not notified of the tax sale, their lien is not wiped off the property and the buyer at the tax auction will be responsible for getting it off the property or paying it off.
Good Investing*************Ron Starr*************
indicator--(MO)-----------------
You can buy a property that has an IRS tax lien against it. There is no prohibition against that. That is why you want to know the situation, though. You want to know whether that lien will disappear from the property for free or if you will have to pay for it to get off, or if it will remain on the property.
You misunderstood my advice. I was suggesting that before bidding on the property, the poster check that the IRS had been notified about the tax auction. If they are notified about the auction, then their lien converts to a right of redemption after the tax sale. That right of redemption expires 120 days later. Should the IRS redeem, the buyer at the sale would get the money back that was paid for the property, plus 5% annual return for the period of ownership.
If the IRS is not notified of the tax sale, their lien is not wiped off the property and the buyer at the tax auction will be responsible for getting it off the property or paying it off.
Good Investing*************Ron Starr*************