Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
hello, i read through the forums for this and i found a couple but not 100% related to my situation. hoping for some help!
got an offer accepted on a condo. REO property.
1 week into escrow, an IRS tax lien was discovered for $150,000. property was purchased at 400K.
basically the sellers (REO) are working with the IRS to get the lien removed or lowered. remember, the previous owner how has this lien foreclosed on this property. irs is now sending in a 2nd appraiser.
what is happening here? we extended the closing date 1 month to give them time to clear the title. what should i expect? we just talked to the sellers and they said 1 to 1.5 weeks from now that it would be settled with the IRS and we can proceed to close.
are they just saying that? what do the IRS do usually in cases like this where the lien was placed but the person foreclosed?
should i really be hopeful here and think everything will work out in the next 2-3 weeks? this is week 4 of the sellers and the IRS contact about the lien.
From what I've read, there is a 120 day right of redemption that the IRS attaches. The title company or an attorney should be able to explain it to you. The three cases I read about closed. Call the title company or your attorney.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,302,067 times
Reputation: 6471
Typically, the IRS gets a lien and if there is sufficient funds in escrow to pay it off, they go away. In your situation, the IRS just wants to assure itself that the transaction is an arms length deal. They will go away just as the REo says.
Typically, the IRS gets a lien and if there is sufficient funds in escrow to pay it off, they go away. In your situation, the IRS just wants to assure itself that the transaction is an arms length deal. They will go away just as the REo says.
so since my deal is not an arms length deal, you are saying the IRS is just making sure. if they deem that this is a regular transaction and not an arms lenght deal, they would take the lien off and i would be able to finally close on this deal? if yes, im a very happy man!
so since my deal is not an arms length deal, you are saying the IRS is just making sure. if they deem that this is a regular transaction and not an arms lenght deal, they would take the lien off and i would be able to finally close on this deal? if yes, im a very happy man!
I trust you mis-spoke? Arms length implies you have no tie to the seller. If you do it is vastly more complex. In general IRS liens are subordinate to the mortgages for reasons of timing. So it is likely the IRS gets little or nothing. All the IRS is doing is trying to assure it gets paid if there is anything available.
I trust you mis-spoke? Arms length implies you have no tie to the seller. If you do it is vastly more complex. In general IRS liens are subordinate to the mortgages for reasons of timing. So it is likely the IRS gets little or nothing. All the IRS is doing is trying to assure it gets paid if there is anything available.
IRS liens generally clear OK. Just takes a while.
yikes! okay i am not buying it from someone at a cheap price. its a regular transacation. so i guess i mis-spoke? i have no ties to the seller.
so in this case, is the IRS going to try and get money from the seller (bank) or will they take off the lien completely if they indeed prove its an arms lenght? i guess i am worried that the IRS will tell the sellers they need to pay. if thats the case, i am worried that the sellers will not want to pay and then i get screwed and have to back off the deal.
yikes! okay i am not buying it from someone at a cheap price. its a regular transacation. so i guess i mis-spoke? i have no ties to the seller.
so in this case, is the IRS going to try and get money from the seller (bank) or will they take off the lien completely if they indeed prove its an arms lenght? i guess i am worried that the IRS will tell the sellers they need to pay. if thats the case, i am worried that the sellers will not want to pay and then i get screwed and have to back off the deal.
Don't sweat it. It is not an unusual situation. If there is any money that would go to the seller the IRS gets it. But the lien gets lifted regardless.
Lifting an IRS lien is a complex procedure and takes a while inside the government even if the lien is being paid off. So be patient and it will likely come out OK.
yikes! okay i am not buying it from someone at a cheap price. its a regular transacation. so i guess i mis-spoke? i have no ties to the seller.
so in this case, is the IRS going to try and get money from the seller (bank) or will they take off the lien completely if they indeed prove its an arms lenght? i guess i am worried that the IRS will tell the sellers they need to pay. if thats the case, i am worried that the sellers will not want to pay and then i get screwed and have to back off the deal.
If you do close on this property be sure to get an owner's title policy!
yup thats the only thing holding us back. we cant get title insurance until the sellers get rid of this lien. sucks for me!
You just have to sit and wait and at closing you will get title insurance (that is how it works in FL) and all the liens have been paid off.
The only thing is the bank won't approve of the deal if the offer isn't high enough to cover the tax lien and a great part of the mortgage.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
