Real Estate Investor · Indianapolis, IN · Member since 2014 · 316 posts · 165 votes
9y
Liens and deeds are two separate animals. I'll answe your questions as a non lawyer, non CPA lien investor. I'll be corrected if I'm wrong.
1. IRS liens are superior to tax liens. In some areas, HOA liens are.
2. Tax liens are not affected by bankruptcy. That just happened to me. Didn't change a thing and I still got property. It may change things if they filed before the sale but you would still be reimbursed for your bid.
3. Capital gains.
4. Yep.
5. When I first started I read over and over again that 95-97% of liens redeem. This wasn't true in my case. It was only about 25%. This is a good problem to have but I invested too much out of SDIRA to easily pay for all current taxes and code enforcements slapped on all the properties to be able to apply for all the deeds. When you buy liens on vacant properties, code enforcement is not your friend.
Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
9y
@Dennis Weber@Ran Fridman IRS liens are equal to and are a first position lien, the same as tax liens. You can ask the IRS to release their right to redeem. This must be done with a specific process. It is not difficult. The IRS will usually work something out with you and give you a price that needs to be paid in order to settle for the debt as to why they have a lien on the property in the first place. There is also a way to absolve the lien by filing a disposition with the IRS. If they do not respond in 120 days they cannot respond and their lien will be gone. All liens which are Federal, State, County, or City will have the same equal effect and will be known as special assessment liens or encumbrances. They won't need to be paid until you acquire the property but it is good to know that you have to pay them. Some county officials will work something out with you. You will have to ask if need be.
As far as bankruptcy is concerned, with tax liens, it will extend the life of a lien. If a bankruptcy litigation period is 4 years then the life of the lien will be extended for 4 years. You do not make interest during the litigation period. This is the reason you get the extension. Also, you cannot foreclose on a tax lien in bankruptcy. You will need to wait until the bankruptcy is lifted.