All Forum Posts by: Sriv Nava

As you may be aware, it's possible to remove the lien according to Title 28 U.S.C. 2410(e).

"Title 28 U.S.C. 2410(e) - Whenever any person has a lien upon any real or personal property, duly recorded in the jurisdiction in which the property is located, and a junior lien, other than a tax lien, in favor of the United States attaches to such property, such person may make awritten request to the officer charged with the administration of the laws in respect of which the lien of the United States arises, to have the same extinguished. If after appropriate investigation, it appears to such officer that the proceeds from the sale of the property would be insufficient to wholly or partly satisfy the lien of the United States, or that the claim of the United States has been satisfied or by lapse of time or otherwise has become unenforceable, such officer may issue a certificate releasing the property from such lien"

Locate the "officer charged with the administration of the laws in respect of which the lien of the United States arises" from the lien (a sample is provided here for the property I was researching - Assistant US Attorney Erin Secord) and contact him/her in advance to find out what information they would require from you if you win the bid. This attorney I contacted was very helpful in explaining what they would need from me if I were to make the request regarding this particular property. However, I did not win the bid on this property and did not pursue this action.

1. Correct, the redemption period is one year from the date of sale (in NC this date is not the date of auction but end of the final upset bid period).
2. For reference Google "Title 28 U.S.C 2410"  which covers actions affecting property on which the United States has a lien
3. It's important to note that only judicial foreclosure sales will eliminate federal judgment liens (other than federal tax liens) in favor of the United States, subject to a right of redemption (1 year). Non-judicial foreclosures, like power of sale foreclosure in NC, will not eliminate federal judgment liens.
4. Non-judicial foreclosures involving junior federal tax liens are governed by another section of the US Code. Google "IRM 5.12.4 Judicial/Non-Judicial Foreclosures"

 Is this a different property than what you posted 4 months back?

https://www.biggerpockets.com/forums/41/topics/1114728-junio...

 Google "ohio section-2329.30"

https://www.legis.state.pa.us/WU01/LI/LI/US/PDF/1947/0/0542....

Within the context of North Carolina, the statutes outline two distinct procedures for tax foreclosure. The first procedure, outlined in Section 105-374 of the North Carolina General Statutes (referred to hereafter as G.S.), pertains to a mortgage-style process and necessitates the initiation of a standard civil action within the state court. This process is characterized by its more stringent requirements.

Conversely, the second procedure, as established by G.S. 105-375, involves an in rem approach. This expedited procedure allows a taxing unit to register a judgment against the property in the state court, facilitating a foreclosure sale after a period of three months. The choice between utilizing either Section 105-374 or 105-375 for foreclosure rests with the county attorney. For instance, Alamance County opts for the In Rem procedure outlined in 105-375.

If one successfully secures a bid on a Tax Deed resulting from a foreclosure carried out under the auspices of 105-375, the prospect of securing title insurance from a title company becomes exceedingly challenging, if not improbable. In such scenarios, recourse may involve engaging an attorney to initiate a quiet title action subsequent to the foreclosure process. This action aims to rectify the title status and establish a clear, marketable title. The intricacies involved in these post-foreclosure proceedings are not to be underestimated.

https://codes.ohio.gov/ohio-re...

If you plan to walk away, consult an attorney. I believe if the property is reauctioned and the new bidder bid more than what you bid, chances are, you may be able to get your your deposit.

good luck

Situations like these will bear the best deals if you do your right due diligence.

https://www.irs.gov/irm/part5

1. If you are the successful bidder and purchase the property and IRS decides to redeem the property within 120 calendar days, IRS will pay "amount paid by the purchaser calculated at 6 percent per annum from the date of such sale". In addition to the purchase price, you will get back any expenses incurred for insurance, taxes eyc. See 5.12.5.2.7 (06-07-2016) "Amount Necessary to Redeem Property". Don't do any repairs until after 120 days unless you feel that the repair is necessary to maintain the property in good condition (etc roof leak etc).

2. IRS lien being Junior DOES NOT wipe out the IRS lien unless the foreclosing Trustee has provided proper notice of the proposed sale to the IRS before the foreclosure sale. This is very important. See (5.17.2.8.2.1 (03-19-2018)Discharge of Tax Lien in Nonjudicial Sale or 5.17.2.8.2.2 (12-12-2014) Discharge of Tax Lien in Judicial Sale). This is something you MAY NOT be able to find from the Trustee, if you are not an Attorney (unless you know someone in the foreclosing Trustee's office). However, if you are working through an Attorney, he/she should be able to find out and get in writing that a notice was filed with the IRS.

3. Example of a part of a proper notice from a local Trustee to IRS

this may be of help.

https://www.bankruptcylawfirmi...