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Roger
Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 31022
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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We are looking at putting a bid on a home in TN that has a

Customer Question

We are looking at putting a bid on a home in TN that has a lien on it from the IRS.It is a large amount and the house goes up for auction on Aug. 9th. so we need to know would we have to pay for that we heard the former owners filed bankruptcy. thank you for your heip
Submitted: 5 months ago.
Category: Real Estate Law
Expert:  Roger replied 5 months ago.

Hi - my name is ***** ***** I'm a lawyer in Tennessee. I'll be glad to assist.

Expert:  Roger replied 5 months ago.

The IRS Federal Tax Lien is discharged from the particular property sold at the same time.....so your purchase price removes that lien.

However, any other liens or encumbrances that are recorded prior to the IRS Tax Lien remain a lien on the property and must be dealt with by the purchaser at an Internal Revenue Service seized property sale. The encumbrances that are recorded after the IRS Federal Tax Lien are discharged from the property upon the issuance of a certificate of sale or, in the case of real property, a deed to the property. (source: https://www.treasury.gov/auctions/irs/faq.shtml).

Expert:  Roger replied 5 months ago.

Thus, you need to have a local lawyer check the title to the property and see if there are other liens against the land that would encumber the property after purchasing it from the IRS sale.

Expert:  Roger replied 5 months ago.

Please let me know if you have any additional questions. Also, please take time to positively rate our conversation so I may receive credit for assisting. Thanks again!

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