Buying a Property With Federal Tax Liens

[Casey Culver]

I was doing research on a home that was scheduled for a foreclosure auction on steps of the courthouse. I found out the previous owner was a realtor who had passed away, so looking through public recorded documents for information on liens and such on this house was pretty tedious. Anyhow, I found out this guy had many liens that I know stick with the property that I would have to pay if I purchased, no problem, would just factor that into the purchase price.

However, this guy also had over $1 million in federal tax liens. Do those stick with the property? Are they something to be concerned about? Should I be scared away? The home is in great condition and is worth $500k easily, state of Alabama.

[Chris Seveney]

@Wayne Brooks

I concur with Wayne. We have foreclosed on many homes with IRS liens and never an issue as long as it’s after the mortgage.

We typically try and get a 14135 prior to the sale to show borrower is not getting any $ back and have to get an official appraisal done but once we follow the process it’s not to bad