Notice of Federal Tax Lien at sheriff sale property


#1

Hi,

I am planning to buy a property from a sheriff sale, and I did a title search on that property. From the title search, there were about 8 Notice of Federal Tax Lien filed against this crazy home owner throughout a period of 10 years, and the sum of Unpaid Balance of Assessment on these 8 copies of Notice of Federal Tax Lien totaled close to $750k.

My questions are:

Let’s say the judgment amount is about $900k, is this judgment amount already included the $750k from the Notice of Federal Tax Lien?

What is included in the judgment amount? Because this home owner also owned the state about $150k in unpaid personal tax.

what happen to the rules below, do they still apply in this situation?:

: a) The lender foreclosing must give 25 day notice to the IRS of the sale and receive their “consent” to have the sale in order for the junior tax lien to be wiped out.

:b) If the IRS has been notified and given consent, the IRS has a 120 day right of redemption after the sale and, if acted upon, the buyer at the sale will be reimbursed the purchase price by the IRS plus interest.

Is this too good to be truth? The market value for property is worth more than 1 million, however, judgement amount for this property seems too low given what the owner owed to the federal and state tax.

How do I know if the Notice of Federal Tax Lien is junior or senior to the loan, the title search seems does not provide any clear answer to this, where and how can I get this information?

Please advice.

Thanks a millions!


#2

You will be buying the tax lien on the property at the sheriff sale, you will need to take possession, and clear the title. Is the owner still in possession? They will have a two year time of redemption before you can forclose.

Read more: http://www.city-data.com/forum/real-estate/874596-notice-federal-tax-lien-sheriff-sale.html#ixzz0xozuzxMr

Thanks
Srgio M
realestate agent
berlin property


#3

Hopefully you had a success and managed to purchase.