The government will go ofter what ever recourse they have available to them to get their money, this includes putting a lien on a property. The lien will be in place in case the house is sold and there is equity to clear the debt.
In your scenario, the house is for sale via auction and the seller is not the owner of the property...the IRS will need to be contacted with the request for the lien to be released. Unfortunately, homes for sale via auction cannot be insured by title insurance because you are purchasing the note, not the house as some would explain.
Get in contact with a title company or a RE attorney...they can explain the risks of purchasing a note where a property has a tax lien...and do your research..
> Marivel Romero
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If you can give me some more information about the specific property, I can see what I can find out. Having worked to remove federal tax liens on a title to a property I was selling, I gained invaluable experience with this particular type of problem, and have a smart team of other professionals I can rely on for answers. Give me a call when you have a moment to share some details about the house.
Valia Rasuli, Broker Associate, PMZ Real Estate
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FEDERAL TAXES should be on a person's income, not on his property; I can see the IRS doing this, but, you should go down to the local IRS office and ask them:
If they will not release the LIEN then you should walk away; not get involved.
I have found the IRS to be very reasonable and responsive.
Good luck and may God bless