Thread: IRS liens

Nothing tells it more than getting a title abstract done, and they can be done cheaply...

I usually get a "letter report" initally, which tells me what state the title is in when viewed at the 10,000 foot level. (It doesn't involve the research that the title company does where they are comfortable guaranteeing the title with insurance, but it gives you a rough view.) And this 'letter report" is cheap, like in the $75 range, if you don't do a lot of business with the title company. Once you are closing two or three times a month, this is usually a complementory service. The nice thing is that if you do order the title abstract, they will usually credit you the cost of the letter report. (They will not insure a letter report, they won't even stand behind it, so take that at face value.)

If you want to get a full-blown title abstract, it will cost about double the letter report, and the will guarantee it for a very short time... Liens can be placed on title very quickly, so one day it might be fine, then next it is encumbered.

If you are truly interested in the property, and the fact of an IRS lien is your only roadblock, I would go forward with getting a letter report... Of course that is A$$uming that you have control of the property. (I never do anything without control of the property.) Besides IRS liens are easily taken off the property.

Hope this helps!

Originally Posted by REITrainingWhse

Nothing tells it more than getting a title abstract done, and they can be done cheaply...

I usually get a "letter report" initally, which tells me what state the title is in when viewed at the 10,000 foot level. (It doesn't involve the research that the title company does where they are comfortable guaranteeing the title with insurance, but it gives you a rough view.) And this 'letter report" is cheap, like in the $75 range, if you don't do a lot of business with the title company. Once you are closing two or three times a month, this is usually a complementory service. The nice thing is that if you do order the title abstract, they will usually credit you the cost of the letter report. (They will not insure a letter report, they won't even stand behind it, so take that at face value.)

If you want to get a full-blown title abstract, it will cost about double the letter report, and the will guarantee it for a very short time... Liens can be placed on title very quickly, so one day it might be fine, then next it is encumbered.

If you are truly interested in the property, and the fact of an IRS lien is your only roadblock, I would go forward with getting a letter report... Of course that is A$$uming that you have control of the property. (I never do anything without control of the property.) Besides IRS liens are easily taken off the property.

Hope this helps!

thank you very much it gave me information that i did not have before. I do not have control on the property yet because it is a tax deed sale. would you still proceed with the letter?

Yes i think you should proceed with the letter... I think its very important..





HELLO FROM MIAMI..!!!

Personally, I would not... Too many variables in this situation...

1. Will the property tax lien wipe out the federal lien... Maybe
2. Will you win the auction... Maybe
3. Can you clean the title afterwards, if the IRS has a lien... Definately

Seeing that it is a tax sale, all notes and liens will be wiped off, so you might have current lien holders bid to secure their position. If there are no lien holders, then you just need to compete with others wanting the property.

If anything, you can have the property released from the IRS lien, by having a few forms signed.

That is MY opinion.

I then take it that the abstract of title will tell me if there is a IRS lien on the property? I can be thick headed at times, but I just need the straight down poop.

I don't want to spend any more money than I have to. so if I am the winning bid all I would have to do is just have a few forms signed? wow that sounds way too easy.

Originally Posted by plumberdude

I then take it that the abstract of title will tell me if there is a IRS lien on the property?

Maybe... It can take a few months to show up, if it was just posted, though the RoD is getting better at pushing these document through. So, if the lien was just attached, you might miss it, hence what title insurance is for.

It's called a Certificate of Release of Federal Tax Lien...

Here is what YOU NEED TO DO... Call the IRS office, and tell them that you are considering purchasing a house at auction and that it has a IRS lien on it, and you want to know the steps are to release the lien off the property, since there is no EQ, and attach it to the prevous homeowner.

Since you are not asking them to "forgive" the debt, and since the previous homeowner will not own the house, they can't attach it to an asset they don't own.

Of course, what they will want to do is hope that the house sells for enough to cover the taxes and their lien, but that is another story.

Just don't give them details, not even the city of the property, just ask general questions, you'll get your answers.

Hope that clarifies.

I think that is advisable...... since you need clarifications about it...


HELLO FROM MIAMI...!!!