Federal Tax Lien on property about to be foreclosed?

[smitnlit]

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

We are interested in an upcoming auction and have pulled some info from the registry of deeds regarding the current owners. Two gentlemen own it and one seems to have a federal tax lien against him in excess of $151,000. The local town taxes have been paid on the property.

If we decide to bid on the property, how will that $151,000 affect the possible purchase? Would we at all be required to pay it?

Thank you.

 

[HomeGuru]

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

We are interested in an upcoming auction and have pulled some info from the registry of deeds regarding the current owners. Two gentlemen own it and one seems to have a federal tax lien against him in excess of $151,000. The local town taxes have been paid on the property.

If we decide to bid on the property, how will that $151,000 affect the possible purchase? Would we at all be required to pay it?

Thank you.

**A: no**************...

 

[seniorjudge]

When was the tax lien placed on the property: before or after the mortgage.

If I am not mistaken, the IRS will have 120 days to redeem the property after the sale.

 

[LindaP777]

When was the tax lien placed on the property: before or after the mortgage.

If I am not mistaken, the IRS will have 120 days to redeem the property after the sale.

Is it 120 days or 180? I don't remember. I bought a house once at the sheriff's sale that had an IRS lien against it. I was told the IRS has the right to redeem, but it never redeems houses as there is just not enough money to fool with. I just cooled my heels until time was up, then flipped it.

Just curious SJ, what does the time frame of an IRS lien have to do with the mortgage? It stays with the property regardless until the right of redemption expires. Unless the value greatly exceeds $151k, no bank would give a mortage on the property with the lien in place first.

 

[seniorjudge]

I do know that some lenders will not loan on any property that has a federal tax lien on it.