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Updated over 5 years ago,

User Stats

153
Posts
53
Votes
Steven Segal
  • Rental Property Investor
  • Leucadia, CA
53
Votes |
153
Posts

Tax Foreclosure / IRS Lien Situation

Steven Segal
  • Rental Property Investor
  • Leucadia, CA
Posted

I have been sitting on this house for awhile, just renting it out - waiting for the IRS lien to clear out next year. Here is the situation:

1. The county foreclosed on the property as the taxes were unpaid for several years. This property is in Wisconsin. 

2. The county was in first position, but they did not name anybody in the foreclosure. 

3. They took title, I am assuming at auction and were the highest bidder (this is unclear), and then sold to me. The IRS lien was on the title report. Trust me, I know it's dumb and there is more to it. Lesson learned and this was several years ago now. 

4. It was issued 9 years ago, so we are coming up on the 10 year mark. 

I applied for a discharge and it was denied. The response was that they agreed their lien should not have survived the foreclosure, but they were never noticed - so the lien stays. The strategy I have been taking is to sit and wait and hope the IRS doesn't extend the lien. I was hoping the county would just essentially be willing to re-foreclose on the property, but it didn't seem that way.

Thoughts? Advice? Anything else.

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