Just got a notice from the IRS asking for guaranteed bids on a house in Southern California. I researched it and it is a trustee sale property that sold to a 3rd party bidder. It is 90 days into their 120 day redemption period so they are quickly trying to get deposits in for a minimum bid amount. This is the first time I have seen the IRS try to redeem a foreclosure property from a 3rd party bidder.
Frankly, the minimum bid amount is a little too high for investors and it barely covers the cost of paying back the winning bidder, recording costs and carrying costs. Not sure why they are even bothering to try to redeem it. They probably will not get any takers so it will not be redeemed, but I thought I would let everyone know that they actually are trying to redeem something from auction.
Thanks for the info.
Are you on some kind of list with the “Special Procedures” section that handles this sort of thing?
I feel sorry for a poor sucker that makes a “guaranteed bid”. The IRS then uses that as a lever to try and recruit other bidders, often at a sealed bid sale. The sucker just gets back his deposit - unless he was high bidder at the bidding frenzy.
Wonder if there was a tip? Maybe a short sale buyer that wanted the property? I think I found it on the IRS and Foreclsoure Radar site and you are right, does does not seem to have a lot of equity for a wholesale auction purchase, Are there a lot of people buying at the IRS sales?
Richard - I vaguely remember how to search for the few IRS sales - mainly personal property. FR doesn’t show IRS real property sales, do they? A short sale buyer would need cash, most likely to buy at an IRS sale. The used to allow you to put up a deposit, and then give you some time to pay the balance. I’m not sure you could arrange for financing. Story from days when IRS was really a loose canon: They had seized a property from a debtor and the agent was actually holding an open house a couple days prior to holding a sale. I went and asked the agent if he was informing the prospective “victims” that they would be buying a half interest? He said if I showed up at the sale he would have me arrested!! You see, i had the other half interest! I went. It was a sealed bid sale. Before I could say anything, the agent stood up and said " I think Mr. T has an announcement." I said I had a half interest. The agent then offered to let people withdraw their bids and he gave them back their envelopes. You see, he didn’t care. He had a bid from an “older” real estate lady who he had told she didn’t need to bother coming to the sale. She had given him a bid! A few days later I found out who the winning bidder (victim) was and told her who I was. She was old and didn’t think her government would scam her. She didn’t try to threaten suit to recover her money. We jointly sold the property. I made my profit and she recovered about 75% of what had given the IRS. There were finally so many abuses of all kinds within the IRS.that got publicity, Congress reigned them in some years ago.
Mike, I always read and appreciate your contributions. You experience clearly shows and you have the ability to make it simple.
Yes, there is a site for IRS auctions and apparently you can sign up for alerts. They have siezed property of all kinds and then a listing for “Real Estate Seeking Guaranteed Bids” There appear to be only 7 properties currently in this category in the entire US, with one in San Diego. It is Radar # 19241328. Does not seem to be anything special to me. Wonder why this property?
7 properties nationwide?!!! Boy, times have changed! The SF Special Procedures Section used to handle many more than that itself.
As I mentioned in another post, the IRS used to track ALL fcl. where they got Notices of Sale. They would call the Trustee after the sale to check the results and obtain the name of the benef. or bidder who acquired the sale. They then followed up on a fair number of these.
I’ve already bored everyone w. my own IRS adventure in IRS seizure. Sometime in the future I’ll relate the story how a very well known local “rock” singer made use of the right of redemption to get his property back after fcl. (My atty. wife was involved w. that.) The bidder who got that (and was redeemed) is still around 20 years later.