1st DOT Note Purchase / Foreclosure / IRS tax Liens

[Brett Goldsmith]

Hey BP!

I'm in the process of buying a 1st DOT on a property that has fire damage. The property is riddled with multiple liens and has 75,000 in back due property taxes. It also has some government tax liens ( IRS ) in subordinate position with no equity. In its current condition only the 1st lien is in a position to recoup funds via foreclosure. The goal is to purchase the note, foreclose on the home, pay the back due property taxes, and remodel the property.

When one forecloses on a home with government tax liens, do they have recourse against the owner to try to recoup their debt up for a window of time? It appears that when I foreclose I may need to apply for a discharge of lien with the IRS. If anyone can confirm this is the necessary course of action I'd appreciate it! I have been involved in releasing government liens on many occasions to complete sales but this scenario is outside of my wheel house.

For the experienced note investors out there, what do you wish you knew before you purchased your first note? What words of wisdom do you have to avoid potential pit falls when purchasing a note? Any feedback is appreciated and I'd love to speak to anyone!

Also, I have a note purchase agreement and would love to see if anyone had an agreement they'd be willing to share. I always am interested in reading as many contracts as possible.