Posted by Dimpil on October 09, 2003 at 17:12:17:
From what I’ve seen and not my personal expereince, the buyer/investor brings the loan current after he gets the current owner to quit claim him the deed/title. The buyer/investor also negoitates with the lien holder to continue the payments as is until they can refinance. They can also go into forbearance and the lien hold can either puts the money owed on the end of the note and you start clean or they take extra payments onto the regular payment to make up the difference. That requires the home owner to sign a new promisory note and such.
I always recommend doing a title search first as I’ve seen many IRS liens make the it a bad investment. Of course if you can talk the IRS into releasing the lien, and they generally do once the person doesn’t own the property, then it’s a great deal. It just takes a few months.