Foreclosure in Collierville>Question Details

Bchism, Home Buyer in Collierville, TN

I'm buying a reo bank owned property that has a huge IRS tax lien on it. How do I cure IRS tax lien?

Asked by Bchism, Collierville, TN Sat Nov 27, 2010

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Voices Member’s answer
My team had a REO listing last year that had a $65K tax lien on it - gorgeous house, appraised @ $550k - listed at $350k. The bank had to fight it out with the IRS, even had to "reforeclose" on the property. After 18 months - 4 buyers who gave up, we finally closed. It was given to the new buyers each time though, if they wanted to relieve the tax burden............rightfully so, none of the buyers took that option up to clear the title.

All the best on getting this resolved. Patience is going to be your best path!

Jo Shaner
Lipsey/Shaner Team, LLC
Web Reference: http://www.lipseyshaner.com
0 votes Thank Flag Link Mon Nov 29, 2010
The bank needs to submit paper work to the IRS to release the lien if there is no equity. However, if there is equity above the first lien the IRS may take over the asset. This will be a process completed by the bank and the IRS which you can add no value to the process.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Meto Milwaukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Sun Nov 28, 2010
Bchism,

You don't clear the lien. The seller, in this case the bank, is required to give you clear title at closing. So they must clear the title or they cannot close.

Gerald Williams
Affiliate Broker
Weichert Realtors - BenchMark
901-413-2233
Licensed in Mississippi and Tennessee
0 votes Thank Flag Link Sat Nov 27, 2010
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