Subject To with a Tax Lien? - Posted by Jerry

import · January 27, 2002, 5:44pm

Posted by Ben (NJ) on January 28, 2002 at 20:13:25:

How old is the lien? IRS liens expire after ten years
unless the IRS re-files. I am foreclosing on a property right now and purposely chose not to join the IRS and take title subject to their lien and just let it expire in May of 2002. Barring that if there is so much to be made, would it be worth paying it off? I have never negotiated with the IRS so I don’t know how amenable they are to discounts.

import · January 27, 2002, 5:44pm

Posted by Jerry on January 27, 2002 at 18:44:20:

Hi all-

I hope someone can help me out with deal. A fellow owns a house worth about $95K. His mortgage balance is $60K, and he has an IRS Tax lien of $14K. He’d deed me the property for a couple thousand dollars, but I don’t know how to handle the tax lien.

I want to buy it subject to the mortgage and lien, which total about $74K, and sell it lease-option or CFD. Problem is, I don’t know how to handle the tax lien. If I just let it stay on the property until some buyer refis and cashes me out, the lien will get paid-off. But, until then it keeps increasing every year, with extra penalties, I imagine. Is there a way to “challenge” the lien, or otherwise get it removed from the property? Maybe a discounted pay-off?

Any suggestions would be appreciated! There’s a lot of equity for a small price…if I can get it to work out.

import · January 28, 2002, 9:14pm

Re: Subject To with a Tax Lien? - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on January 28, 2002 at 22:14:21:

Jerry---------------

Get a copy of the IRS lien and call the office which put it into the records.

You can try to make a deal whereby the lien remains in the county records, but they release the specific property from the lien. You pay them something for this. You might want to have the owner contract them if you feel he can handle it.

They may not agree to do this. Especially if they do not have a payment plan going with the taxpayer (non-taxpay?). And if he does not have other assets to go after.

Good Investing**********Ron Starr*****************