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Ely
Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 102584
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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I am interested in bidding on a piece of real property

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I am interested in bidding on a piece of real property scheduled to be auctioned by the IRS. The IRS has provided a list of encumbrances on the property including a municipal real estate tax lien and several others.
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Sorry, hit enter too soon. This is located in NH. Is it unwise to participate in these auctions with known encumbrances on the property. I have done a little research on quite title suits. We would plan on making this our residence.
JA: Has any paperwork been filed?
Customer: The auction is scheduled for the end of the week. The IRS has this property listed on their website along with the list of encumbrances.
JA: Anything else you want the lawyer to know before I connect you?
Customer: I think that about covers it.

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It is unwise, in that the buyer will be responsible for the inherited encumbrances. In addition, the individuals/municipalities/etc behind the encumbrances may move to foreclose on the property soon after. In other words, unless the IRS can guarantee clear title, it is simply NOT worth the money in 90% of the cases.

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Customer: replied 1 month ago.
Thanks for the answer. Why would someone bid on this property? The list of encombrances is over $1,000,000. Owner was in serious trouble.

Because this is what the IRS does. And some millionaires/investors/etc have money to burn, thinking paying off the money encumbered may be worth it in regards ***** ***** property growing in value later on. It is a risk.

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Customer: replied 1 month ago.
Its unusual in that the property is being auctioned with the requirement that it be owner occupied. Can't be an investment or rental property. IRS has indicted a minimum bid that equals about half of the property's market value. The property has been unoccupied for several years and will need serious rennovation.

Right, but the IRS really does not have anything else to do with this property. The standard is to auction off any property, so this is what they are doing.

Kind Reminder: Please, use SEND button to keep chatting, or please rate positively and click SEND to submit your rating once satisfied. You may always ask follow ups at no charge before or after rating. "I STRIVE FOR FIVE!"

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