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Updated over 8 years ago on . Most recent reply

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Mark Spivey
  • Phoenix, AZ
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Fed Tax Lien Question

Mark Spivey
  • Phoenix, AZ
Posted

Hello Everyone!

I'm planning on bidding on my first property at auction soon and started doing a recorders office search on the title.

It looks like there are some hefty Federal tax liens that were filed on the same day about a year ago. One is a "1040" type (under "kind of tax" column) for $20k & the other is "CIVP" type for $21k.

I'm wondering if its a total of $41k or if its a kind of duplicate filing.  I don't have much experience with title searches. I'm guessing the 1040 one is for personal income taxes and when I googled the "CIVP" one it looks like it just means civil proceedings.  I'm not really sure.

Would these will go away after auction?   I know federal stuff usually doesn't, but I really don't know a lot? Think I can get them dismissed? Does it make sense to pay for a professional title search on this?

Thanks for any advice you might have!

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,508
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

@Les Sechler Not correct.  An IRS lien is like any other lien as far as priority....first in time, first in line.  Assuming the fed tax lien was recorded after the mtg, and they are served in the foreclosure proceeding, their lien "sunsets" 120 days after the sale.  During this 120 days they have the right to redeem....repay the bidder at auction and take over the property.....but this almost never, never happens.

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