How to go about purchasing a home with a $150K IRS Lien?

[Adam Taveras]

I spoke to the owner of an abandoned house and she is very motivated to sell.

I am prepared to make her an offer however she informed me if an 150K tax lien from the IRS. 

My question is:

Is there a way to get that removed? I have no interest in paying off the lien.

What is the best way to go about this? What would be your first steps?

[Don Konipol]

IRS liens are subject to Federal law which preempts state law.  While IRS liens do expire after ten years, the IRS has the option of refiling the lien for another ten years.  This refiled lien is now behind all valid existing liens and not an extension of the previous IRS lien.

The IRS has gotten much more competent in evaluating collateral, resulting in a much tougher stance regarding offers to compromise.  The belief that the IRS will accept a few hundred dollars for the removal of a lien in which significant equity exists is based on a fantasy of urban myths or examples in which very unusual circumstances existed.

In most cases, after a long drawn out process, the IRS may accept less than face value of the lien if the property sells for somewhere in the general range of its appraised value.  The amount collected by the IRS will go toward satisfying the debtor's amount owed to the IRS, not eliminating that amount.  So, it is in the property seller's best interest to obtain the highest price possible for the subject property; not just any amount because he won't be collecting any proceeds anyway.