Steps after receiving TDUS Trustee sale and IRS lien on owner


#1

Purchased a home in California in Trustee auction this Monday. I received the TDUS from Trustee via email today. Now, what are the next steps getting the ownership (what else we should be receiving from the trustee/title). And what will i need to take to county recorder office to have the deed recorded?
It is located in HOA area and to have authorized access, we need to show the recorded deed soon.
Also, there is IRS lien on the owner in 2008 (the address on that lien is different but appears to be same owner)…as i understand IRS has 120 days redemption period? How is that taken care, what if anything should we do to get that wiped out, as well.


#2

Hi Mac,
You will want to get that Trustees Deed recorded ASAP. As long as it is recorded within 15 days of the sale date the effective date of the sale will be the day of the auction not the day of the recording.
If there is an IRS lien on the property then you will need to sit tight for 120 days. You could open escrow and have them pull a prelim so that you can see for sure what liens are active on the property. If you see an IRS lien you will not be able to sell the property (get an owners title policy) or secure a loan against the property (from an institutional lender) until the 120 days has expired. The chances of the IRS redeeming the property are slim to none with a heavy emphasis on none. As they say, do not poke the sleeping bear, so do not contact the IRS. Nothing good can come of it unless you are interested in paying a portion or all of the lien.
When you take the deed down to record at the recorders office bring you check book. You are going to have to pay transfer tax bases on the purchase price. This amount varies from county to county (some cities have transfer tax also).