Michigan Sheriff's Sale - IRS Liens

[Marc M.]

Hell BP,

Has anyone had any experience purchasing a property on the courthouse steps in Michigan that has an IRS lien on it? I've been reading a lot threads on here that sounds like the IRS lien is wiped 4-months after the auction, but I just want to confirm that is the case for Michigan. Also, what procedures (if any) are necessary to release the lien after the sale? Is the public notice of the foreclosure considered adequate 'notice' to the IRS? If I buy this property, do I just wait it out 4 months for the lien to sunset while waiting 6-months for the redemption period to pass too?

I'm looking at property going up for auction for $183K that is worth $230K and has a $60K IRS lien. 

Best,
marc

[Josh Carr]

@Marc M. An IRS lien is equal to a first position lien and does not go away.  You will need to file a disposition with the IRS where they have up to 120 days to respond and if they don't then they no longer have a lien on the property.  Or, you can follow the info I provided in a previous text of what to do requiring a typed letter sent to the technical advisory management group which is the group that works for the IRS that releases their liens and ask them to release their right to redeem.  They will send you back a letter with an amount on it that will need to be met or they will release the lien at that time.  You can let them know that you are not the one that incurred the debt and they will usually work something out with you.  It is not a difficult thing but it is a process that needs to be done.  Some places will add the IRS lien into the opening bid.  Find out if this is the case with the County Tax Collector/Treasurer whomever is responsible for delinquent back taxes.  They will let you know that it has to be handled or that it is added in with the opening bid.  Good luck and let us know how it turns out.