Is The IRS On This Tax Lien?
I'm about to go to a tax deed sale and was wondering what I need to do...
How do I find out if the IRS has a lien on the tax deed?
Do I need to do a title search to find the outstanding mortgage?
What is a good reference?
Quote:
On 2004-06-01 15:11, nmcurse wrote:
I'm about to go to a tax deed sale and was wondering what I need to do...
How do I find out if the IRS has a lien on the tax deed?
Do I need to do a title search to find the outstanding mortgage?
What is a good reference?
Just go to the sale and watch. You are not ready to bid on anything yet. Don't worry about mortgages unless you see that the holder of one was not properly notified. Governmental liens are what you really need to be careful about as they will survive the sale. In Florida, a code enforcement lien on one property attaches to each and every property owned by that same party in the same county.
Do not buy anything unless you understand the process completely, have done your due diligence on the property and are aware of the games that the oldtimers will play on the courthouse steps to relieve you of your money. If you decide to buy anyway without heeding this advice, don't pay any more for a property than you can afford to lose.
I agree with the above response.
And know that IRS liens do not carry with the new property owner. While some IRS agents might try to intimidate you as the investor, all it takes is a phone call, a form and the lien is removed from the property once you own it (this is after you foreclose on the property).
What you do have to be careful about is local county and city liens. Those always carry and they are always due.
In Kentucky the medical bills of the previous owner will get tagged onto the house; so if you foreclose on the property and the previous owner just died of cancer leaving a $250,000 chemo therapy bill behind, this lien will be put against the house and you will have to pay for it.
Definitely don't buy unless you know State laws.
Francoise