I recently purchased a duplex at a St. Louis City Tax Sale. The preliminary title report showed that there is a Federal Tax Lien attached to the property, which doesn't automatically get wiped out through the Tax Deed Auction sale. However, I was told that these Federal IRS tax liens follow the person and not the property. Now that I purchased the property and the title is in my name, I want to get rid of this tax lien that came from the previous owner. Does anyone have experience getting these tax liens waived/discharged? Thank you.
Check with the title company....typically if they were notified, they have 120 to exercise their lien and buy you out. I've heard they rarely do this. Chances are if they were not notified you need to do the notification. I just had one like that...IRS was notified as part of the tax foreclosure....the 120 days has passed and I never heard from them.
Check out this thread:
My understanding is that if a redemption happens they will reimburse you for acquisition price but not any improvements. So some folks wait out the 120 days before putting money into the property just to be safe.