IRS Liens in Former Owner's Name - Special Warranty Deed Enough?

[Mark Beekman]

I have my eye on an occupied bank-owned property on an auction site that was originally foreclosed on this past October. As is customary, the auction site offers a Special Warranty Deed.

While digging around to find information on the previous owner (who still resides there), I found several large IRS liens in this former owner's name.

Does a Special Warranty Deed protect me from a potential IRS redemption in this case?

[Wayne Brooks]

No, a SWD only makes the bank responsible for things that occurred while They actually owned it.  However, as long as the IRS was properly notified/served in the foreclosure, their lien/right to redeem expires 120 days from the foreclosure auction sale.  Also, I assume you're getting title insurance, make sure the IRS lien, or any others, is not an exception listed in the "B" section of exceptions.