Re: Auction on Monday… FIRST FORECLOSURE - Posted by Sue (NC)
Posted by Sue (NC) on December 30, 1998 at 07:50:14:
Most city/county property taxes and city assessments will be superior to mortgages and deeds of trust.
Also beware of judgements docketed prior to the one foreclosing.
Make sure the judgement foreclosing is against ALL of the owners of the property; that the interest being sold is not a partial interest.
The IRS liens will not be superior to mortgages/dt created previously, so you do not need to pay them- however the IRS might undo your deal. They have 120 days from the sale date to ‘buy back’ the property at your cost, plus any expense related to securing the property. This is called their Right of Redemption. They do not pay for any improvements you might have made- just necessities like locks and windows.
I’ve found that when buying IRS liened homes, they rarely try to get the homes back. This probably depends on your market, as I see they advertise for bidders in southern California, specifically for the purpose of exercising thier redemption rights.
The IRS doesn’t want to own the homes- they have always been negotiable when I have called them. (I will do this if I want to finance with conventional loans, since these lenders will not lend on property within the 120 day redemption window). The last time I paid them, they took 1500 to give me a letter stating that they would not redeem the property (it had 400K in IRS debt, but I was paying close to 80% of value). But I’ve found that they usually don’t call me unless the deal is stupendous, and sometimes not even then. I just wait my 120 days, doing only cheap repairs.