Please bare with me on the obvious rookie construction of this question. I am looking at an Oregon property that is in pre-foreclosure. The property has IRS leins (1040, CIVP and 941). Do the reinstatement and pay-off amounts on the NOD generally take these into account, or are the lein blanaces "on top" of the money needed to bring the home current?
Thank you Mike. I was hoping to help out the owner as a favor to family, but given the margins I’m looking at, your suggestion certainty seems like the best route. From what I understand, these leins “disappear” from the property (for lack of better phrasing) after a foreclosure sale? I was told the IRS was very open to negotiation in regards to income leins on pre-foreclosure properties, but how much so would be the breaker. In this case, they would need to forgive almost 80% for this to be feasible. Thanks again!
I believe any IRS liens as well as any other governmental liens (e.g. tax liens) do not get wiped out at foreclosure auctions.
Though to clarify you wouldn't have to satisfy the IRS lien but it does come with a "right of redemption" period which they may or may not exercise their right to use.
Odie: that cleared up my follow up question. From what I understand, that's a rare exercised right here lately, but it's good to know that the possibility exists. Thank you!