6 Replies

HI All, I am planning to buy a property through sheriff sale. 

Once i do a cash buy, Can i get a mortgage on the property that has IRS liens ?

The property has Condo/HOA liens ? Who is responsible to pay the Condo/HOA lien amount

A recent property tax bill is also due. Who is responsible to pay the pending taxes ?

@Sandy Reddy

I do not think you will have an IRS lien after the sale, as long as they were served notice and the lien was recorded after the mortgage in default.  You may or may not have to pay the back property taxes.  Check with the sheriff to see if they are part of the costs.

@Account Closed in other BP forums, i saw IRS has 120 days redemption period. ( which is very unlikely). And if they do, they pay back the purchase price and closing costs. I am little positive about the condo liens and back property taxes will be taken care by the bank that is foreclosing the property, but not sure about IRS liens. I tried to call the attorney office to get a break down of the judgement amount with no success.

Will try to reach out Sheriff office tomorrow and see if i can get an accurate answer. 

@Sandy Reddy

Your are correct in your concerns.  The sheriff probably wont tell you much, but the liens will be removed during the foreclosure sale, however the IRS does have the said right.

NJ is a judicial state and the following comes from the IRS website.

In accordance with Title 28 U.S.C. § 2410(c), the Internal Revenue Service has the right to redeem real property which is sold in a judicial sale where the United States position is junior to the foreclosure party.