Buying tax delinquent property but IRS is seizing profits

[Hunter Adams]

I have found a property which will be going to tax auction soon and made contact with a relative of the person on the tax roll. The original owner is deceased and according to the relative the IRS is seizing any money from sales on any of the deceased properties.

My question is do they still have any motivation to sell? Would my money on top of paying off the defaulted property tax help with their overall tax burden?

Also, can I get this relative a finder’s fee or something similar to put me in contact with the current owner if I do indeed buy the property?

If I buy the property will I be responsible for any of the deceased’s IRS debt?

Bonus: If there’s an entire RE portfolio associated with the deceased and it is valued at more than the deceased’s IRS debt, should they sell off everything they can?

Lots of questions, but any info will help. Thanks!

[Ned Carey]

@Hunter Adams The IRS lien is a lien against the property and while you can buy it without the lien being paid off you will not get title insurance and you are at risk the IRS will take it.

How much is owned? If the amount you are paying is more than what is owed, the amount of the lien is simply taken out of the sales proceeds to the owner. In that case you get clear insurable title.

As @Josh Caldwell said you may be able to get the IRS to release the lien on this property. Perhaps you pay get a release for partial payment of what is due. I have no specific experience here but it might be tough.  There are rules about getting IRS liens release but I have never had an attorney that could give  me a clear concise answer to the process.

   Also, can I get this relative a finder’s fee or something similar to put me in contact with the current owner

UM didn't you say the owner is deceased? I don't think heirs are going to help. I would try psychic.

Seriously if the owner is dead and title has not transferred then you need to buy it from the estate of the deceased.

      If I buy the property will I be responsible for any of the deceased’s IRS debt?

Well you are not technically responsible for the deceased's debts, if the debts are mortgages, liens or judgements attached to the property, they have to be paid by somebody to get clear title.