Wow, what a unique situation. I am sorry I no help in this situation but hopefully, my post will help increase the number of people who can see this. I'm interested in how will play out. I wish you the best of luck!
Your post title said the irs seized the homes. Was it actually the irs, or some other agency? If the irs, I assume this was Not because there were irs liens previously filed, but due to some tax evasion for cash rec’d in an illegal enterprise?
In any case your contract and the fact you paid the property taxes won’t have any effect on this. You don’t have any kind of lien or mtg on the property I presume so this doesn’t look good for you.
Obviously, an attorney versed in this would help.
I have to admit, this is something out of left field that would be hard to foresee. Do let us know how this progresses.
@Jonah Wilson You still need to go to the tax collector/treasurer and make sure that the Title Company has paid the taxes to the County. Once the taxes show as paid (from the Title Company you paid them to), they would be removed from the upcoming auction. If they have been seized you need to find out why. If it is for an IRS bill then there is a group with the IRS called the Technical Services Advisory Group that handles all delinquent taxes on properties. You can reach out to the Manager of this group. Once you have this answers you will know what you need to do. There is a way to ask the IRS to release their right to redeem on the properties. Usually a price will need to be settled on and there may be no breaks but you could at least get the properties you have already invested in, providing the price is right. Then you could talk to the Title Company about a closing on the homes, pay off all and any additional debt required for the homes and take title to them.
with out detail answers are all speculative .. one would need to know exactly what happened.. I am not sure you even know or at least you did not articulate it in a manner that anyone can give you exact advice.
@Josh Carr advice is right if you bought it at tax sale or auction and IRS is redeeming if they are they have to give you your money back.
If you just volentarily paid their property tax's for them.. and thats what we are assuming.. and the guy gets arrested or what have you.. and you have a valid purchase contract you can sue for performance if you dont get wiped out by a prior foreclosure/
I had this exact scenario in Portlandia 3 years ago... I paid 40k in back tax's plus gave the owner 10k before she lost the property in a matter of days.. but she would never sign the closing docs.. so i was forced to sue for performance.. she did not have the money to give me my money back.. took 2 years and about 15k in attorneys fees but we won.. even with the judges order she would never sign the deed.. so I had to go back in and get the judge to amend the order in a manner that title company would insure me based on his court order.. its the first time I ended up owning anything with NO deed transferring title. Tax sales you get a tax collector deed.. sherrifs sale a sherrifs deed.. , trustee sale a trustee's deed so on and so forth.. but in this case NO deed was recorded just the judges order