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Updated almost 10 years ago,
Need Help With Right of Redemption
I recently purchased a homeowner's redemption rights on a property in foreclosure. There is an IRS lien on the property that is junior to the mortgage. The sheriff's sale is going to occur in the next month and then I have 90 days to redeem on the property. The issue is that the IRS has a 120 day redemption period. I spoke with a title company about getting title insurance during my redemption period. They informed me that not only will I not be able to get title insurance, but that the lien reattaches to the property if I redeem. The title is only scrubbed clean if it sells at auction and the IRS redemption period lapses. Does this sound right? Has anyone ever had success getting a lien waiver from the IRS or getting them to release their right of redemption?