Well Alex I know this is late as I’ve just started posting.
You can negoitate with the IRS and see what you can get them to take but you need to reduce what you give to the owners now that you have to give the IRS the money they would not.
Next time, do a quick title search, it would be worth the $100 you pay for the attorney’s time or you can do it yourself for free (or your time).
If you get the IRS to settle for 10 and you give the owners 5 you still have one heck of a deal!
Great forum. Hope someone can shed some light on a newbies wrinkle on a potentially great deal.
Found a preforeclosure that was going to go up for auction Oct. 7 with a listed $39K for opening bid. The house is in great shape and based on comps in the area, it is worth between $85K and $95K.
I got the owners to sign a release that allowed me to talk to the lender about a possible mortgage discount. Normally no lender would even consider something like this so close to the auction especially given the large equity. But thanks to this forum, I told the lender that the owners are ready to file for bankruptcy protection which would stop the auction sale in its track. Believe it or not, the lender settled for a payoff of $25K.
Now I was ready to make an offer to the owners to sell me the house for $35K, which would put 10K in their pocket and walk away mortgage free as we discussed before I got them the discount on the mortgage. And that’s when I found out about a $15k Federal Tax Lien against the title.
I have never encountered a situation where there was a lien against the title before. How does this affect the deal?
Can someone please shed some light on this before I get in too deep?