Posted by David on February 18, 2000 at 14:36:33:
they don’t need it but have it none the less. after the foreclosure if there is a IRS lein to contend with they use their superiority to usually negotiate a financial settlement in their favor. If they can’t not get their desired settlement then they can just claim the property. It called negotiating from a no lose situation. If you can show that there is no equity then then may walk away. But if there is no equity why are you buying it? In most foreclosures the borrower does NOT have an IRS lein to contend with, but usually have precious little equity either.
Usually if they have equity there’s a way out.