Hey guys, almost there. Friday is 120 days from the day of the trustee sale and when they will order a new preliminary title report to make sure it is clear. If it’s not, what would be my next step? Is there a reason it wouldn’t be?
Congratulations on your patience! I am currently on day 80 of my waiting period. 80 days down…only 40 more to go. I am purchasing a foreclosure that turned up with a $10,200 IRS tax lien on the title after doing the prelim lien. I had never heard of this, and have found this website a great help. There is definitely comfort in knowing others have experienced the same thing and it turned out ok. Be sure to let us know how it goes!
120 days! Thanks again for any of you that gave advice. Now I just have to wait for a title report to come back. My title company wants to wait a few more days to give things time to clear. Is this neccessary? Won’t it just automatically be ok after the 120 day period? Any thoughts?
The title company will probably use use the date the TDUS was recorded. So, when did you record the deed?
I’m not real sure of exact date, I’d have to look, but it was a couple weeks after the sale. Why would they do that? The IRS law site says 120 days from the sale, doesn’t mention anything about the date of recording of deed. Is this from personal experience?
It is a more conservative policy. Lenders will do the same thing.
So does that mean they will use that date, or they can? Is it an industry standard? Or just sometimes done? Just wanting to know what to expect. Also, why would they? If they could close sooner?
You will have to ask your title office. This is my experience with Fidelity on two properties with IRS issues, you may be able to get a different answer. This is a different problem that if the IRS will redeem. Post what you find out, just be ready to ask the question. And, BTW, I don’t they care how fast deals close.
Sorry for the typos, Check with your title officer, … from my experience they don’t seem to care how long it takes to close. Your experience could be different. I hope it is.
Hi Curtis, It is more about your title company that the IRS at this point. If 120 days has passed then your title company should be ok with insuring the title for a new buyer. If the title company is balking at insuring the title then they should be able to give you more information on why. If they can’t help you then it may be time to shop for a new title company.
I completely agree. They wouldn’t a title report until today because they felt it was safer. I asked them to do it on day 121 and they refused. A little ridiculous if you ask me, but the seller picked the title company. Does it really take “a couple days to clear off” as they said?
I am still waiting 6 days after my 120 day waiting period…still haven’t gotten the preliminary title report back! Title says it is normal to take 5 to 7 days…any thoughts? I can hardly stand waiting one more day!!
Hi Laurie, Depending on the volume of business it is not unheard of for a prelim to take 5-7 days.
We got tagged with a claim of $15,000 when the IRS came swooping in on a case. Don’t assume they won’t do it. And, after the fact, you have no leverage. How are you going to fight the IRS? Their claim was an outrage as the equity clearly wasn’t there but it was pay up or they were going to go after the property. The innocent buyer was caught in the middle.
Hi Cebva, Just to be clear. You purchased the property at trustee sale. The IRS did not redeem the property but you voluntarily paid the 15k?
I agree w. Michelle that it sounds like you voluntarily “donated” $15K to the IRS. What isn’t widely known - The IRS has to find a pigeon to put up a deposit (20%?) of their offer before the agent can request funds to payoff (redeem) the property. The pigeon rarely knows his feathers have been plucked - until later - when the IRS then publishes a sale notice offering their property to the highest bidder. The way you describe the situation - with little equity - they wouldn’t have found a pigeon to make an offer. OTH - maybe there was a big profit to be made - or you wouldn’t have bought the property in the first place and paid an additional $15K on top of that.
I should point out that the pigeon, above, if not the eventual high bidder, does get his deposit back.
I am new to this site and it has been helpful. I am interested in a foreclosure with an IRS tax lien. I was happy to hear that the IRS tends not to redeem; however, the lien for this property is $400,000. The lien is greater than the appraisal value of the home (based on county estimates). The opening bid is based upon the property taxes that were unpaid. Property taxes owed are well below the IRS lien. What are my chances the IRS does not redeem?
I am confused by your statements.
- How big is the lst (and second if there is one)?
- Which loan is set for sale?
Based on my research, the original owner purchased the home outright taking no loans. There are no liens from banks or mortgage companies listed and I did not find any bank information on it either based on a public record search online. But, she did not pay her property tax for the past 4 years and did not pay federal taxes as well. So I assuming that it will only have the federal tax lien on it.