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Jude Welsh
  • Investor
  • whippany, NJ
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Federal Lien Removal process

Jude Welsh
  • Investor
  • whippany, NJ
Posted Aug 11 2015, 15:02

I plan to bid on a property in a NJ (judicial sale) sheriff's auction that has a Federal Lien attached for IRS 1040 taxes.  This lien is junior to the foreclosing mortgagor, and will be wiped out.  The Government was correctly notified as a party in the original foreclosure complaint.

I understand there is a 120 redemption period for the Feds from the sale date.  I have scoured the 'net and not found anything (even on IRS site) as to the process for getting a formal Discharge of the Lien from the feds after the redemption period.

There has to be some way to Discharge that could be Recorded; otherwise, during a title search the Fed Lien would still show up and prevent me from selling the house.

Has anyone done this before who could opine on the details?

cheers

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