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Updated over 9 years ago on . Most recent reply

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14
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Jida D
  • Watertown, MA
4
Votes |
14
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IRS lean on foreclosed house - IRS not notified.

Jida D
  • Watertown, MA
Posted

I put a bid on a foreclosed property and purchased it 4 months ago. What I found post purchase was an IRS tax lien on the property for $22 000. After doing further research, I found out that the IRS had not been notified and given consent, so the tax lien is still there.

The question: What are my options hereon to remove the tax lien?

Most Popular Reply

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13,452
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Steve Babiak
  • Real Estate Investor
  • Audubon, PA
8,349
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13,452
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Steve Babiak
  • Real Estate Investor
  • Audubon, PA
Replied

When the IRS has not been properly served notice of an impending foreclosure auction, the IRS lien survives the foreclosure. As @Ned Carey pointed out, this is a matter to be handled by the title insurance company IF there was title insurance AND the IRS lien was not listed as an exception in the title policy. 

If no title insurance coverage, you get to pay the IRS ... whether they will take less is doubtful since they are probably in first position now. 

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