IRS TAX LIEN


#1

Hello all,

Since Title company does not have the social security number of home owner, so they can not tell the IRS liens really belong to that owner or not before the auction ( the name of homeowner is very common sometimes.). If I take the risk of holding the property for 120 days, then buy the property at Trustee sale, how can I find out for sure that my property has a IRS tax lien after successful purchase? How does Title company find out and confirm that tax lien after the auction since they still don’t have the SI of homeowner? Do we need to hold property 120 days for State Tax lien?

Thank you in advance for your helps and am very appreciate it.

Daniel


#2

This is a pretty rare issue and isn’t as hard to solve as you’d think.

It really only happens with common names, though it is more likely to have multiple name matches in large counties.

The IRS lien is going to show an address for the borrower. If it is the address of your property its pretty simple. If it isn’t than you simply need to rule out the possibility that its the same person.

If the IRS lien is junior, and you can’t prove that it isn’t your party, then just hold the property for 120 days, and then it no longer matters at all whether it is your party or not.


#3

What Sean mentioned is correct. for adding little more, when 120 days, my title company will county 120 days from the day of auction, not day of recorded deed…Thank you. You can open escrow anytime, but you just have to close on or after 121st day!