Who are you making the offer to…? The homeowner or the Bank… ?
The Bank does not currently own the property, so the only thing they can do is 1) Negotiate a short sale, by agreeing to take less than what is owed. 2) Sell you their note & mtg, 3) Negotiate a theoretical sale in that event that they buy the property at sheriff sale, providing it goes to sale.
If you are negotiating with the Homeowner, you need to stop right where you are… Reason being, you do not understand the impact of the IRS Lien, if you buy this from the HO… The lien will not be gone in 6 months of ownership… as you suggest.
If the Bank buys the property at Sheriff sale, they will then become the owner, in fee-simple. They can then ask whatever they want for the property, subject to the Banks Charter. There may be some limits (self-imposed) as to what they sell foreclosed assets for, but barring that, they can make as much $$$ as any other investor in that situation.
I have a contract on house…sale day is 7 days from today. Worth 120k…final judgement is 62k. I saw an Estoppel letter at the house that said money owed is 66k. They turned down my initial offer of 52k. Should I offer the estoppel price of 65k or the final judgement price of 62k.
Also there is a 17k IRS lien…however the guy at IRS told me they have only redeemed 2 liens in past five years…so after six months of ownership my lien will go away…
I honestly think the bank knows the house is in a hot area and is looking forward to getting it back. Can they ask for more than the final judgement???
You apply for a ?Certificate of Discharge?. This is from the IRS web site www.irs.gov
Federal tax Liens on Foreclosed Properties
If application is made under the provisions of Section 6325(b) (2) (A), or 6325(b) (2) (B) because a Mortgage foreclosure is contemplated, there will be a Determination of the amount required for discharge or a Determination that the Federal tax lien interest in the Property is valueless. Within 30 days from the date of the application, the Applicant will receive a written conditional commitment For a certificate of discharge. When the foreclosure Proceeding has been concluded, a certificate of Discharge will be issued in accordance with the terms Of the commitment letter. Also, see Publication 487, How to Prepare Application Requesting the United
States to Release Its Right to Redeem Property Secured by a Federal Tax Lien.
Re: Florida Sale is 7 Days away… - Posted by John V, Fl
Posted by John V, Fl on July 16, 2003 at 10:45:47:
What county are you in? If in any of the ones in the large metro ares of Tampa, Orlando or South Florida the investors at the steps will bid it to 100k easy if it doesn’t need a lot of work from a drive by. I’d hunt down the owner to have a chance.