Buying Subject to with a person who has ta liens

[Edna Terry]

Good day beautiful investors, I have a situation where the owner of a condo has rented to a tenant & the owner moved to FL. Only to find that the IRS came to the house serving a Tax Warrant on the owner. The total of this lien is $30000. IRS has a lien on the condo. And the owner has no . plans to answer the warrant. Now the tenant and owner made contract to buy within a set time, how can the tenant buy the condo "creatively" from the owner? Can this be done as a subject 2 on the HUD 1?

[Ernie Neve]

This is a common situation.  This deal CAN still be done, but the owner in FL has to step forward and work out a resolution with the IRS, which can certainly be done, and, depending on the owner's other circumstances, the resolution may be quite favorable to the owner.  The Federal Tax Lien can be released prior to or concurrent with the closing, but there is a process that must occur first.  If the owner wants to step up, I would be happy to answer additional questions about the process.