IRS Tax lien found after we signed loan docs

[btraction]

What is the name of your state (only U.S. law)? CALIFORNIA

Hi, any help would be greatly appreciated.

My wife and I are trying to purchase an REO home.
We signed loan docs and expected to close two days later.
On the day of closing we were notified that the REO company found an IRS tax lien for $19,708.

The following information is as it was told to us by the title company:

The initial foreclosure started in January of this year. A certified letter to the IRS notifying them of the sale was sent.

The homeowners filed for bankruptcy in March. The foreclosure was stopped because of the bankruptcy.

The homeowners did not want to keep the house. Foreclosure was restarted in April of this year. A letter to the IRS WAS NOT sent out this time.

We are now waiting for the IRS to respond to a waiver for release of the lien.

***My questions: Is the initial letter to the IRS still valid or did another letter need to be sent to the IRS in April? How long does the IRS take to respond to a waiver request?


Thank you again for any help.

[btraction]

Hi, my wife and I still haven't heard back. Apparently, we are waiting on the IRS to issue a waiver and remove the lien. Does this actually happen and if so any idea how long it could take?

We have been in escrow on the property since August 13th. It is very close to family, otherwise we would have canceled escrow already.

Thank you for any insight or input.