IRS Liens
I wasn't sure where to ask this so I hope I'm in the right spot.
I was told by the realtor that a property I want to purchase is free & clear. well, my lawyer says, 'not exactly'. there are IRS liens against the owner larger than the purchase price. so, he's working with the IRS to get this property released via my proceeds so I can purchase it (the guy also owns other real estate so the IRS still has some property security).
so now my question since this is The Creative Investor. If the IRS won't release the property from their lien, what could go wrong if I offer to lend via Mortgage on each of this guy's other properties the difference? Without checking, I believe I read somewhere that the IRS charges 18% interest and I certainly would like 18% on the $20,000/$30,000 he's coming up short. The only draw back I can think of would be if he files for bankruptcy. Naturally, my lawyer can tell me if someone can waive their rights ahead of time to exclude something from bankruptcy although I'm guessing they can't. Anyway, does anyone know any other negatives that I should I put this out of my mind or is it something worth thinking about some more until Monday when the lawyer calls w/ a status update.
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