there is a house I am interested in that was foreclosed which had irs liens. If I want to be a guaranteed bidder how do I approach IRS to get them to redeem?
You won’t.....and even if you did, it would go up for public auction. If there was little/no equity the irs would never even consider it......assuming you could get someone to even consider it......dead end.
I get it would go to auction. I would make offer with maybe 100k of equity (debt 1.4m and offer 1.5m). Sill think it is a dead end?
Whoever sells you the property should clear all liens, encumbrance, the title company carries insurance and should they messes up the insurance covers it. Best way is now order a preliminary title on the property. Pay a few bucks more accurate at auction.
How much was owed to the foreclosing lender, what is the current fair market value, what did it go for at the foreclosure auction?
auction 450k on second
First is 1m
Market value is 1.7m
so you're gonna have to spend 1.45MM on a 1.7MM property. Is that a good enough ROI for you? You have less than $250M in potential equity, not including acquisition, carrying and disposition costs, usually at a minimum of 12.50%, which erodes all but about $37.5M in equity. Based on those numbers, I would not invest 1.4 million dollars to earn a return of 37,500 dollars.
Thanks for the response. Right not great equity. I got outbid at auction (I let it go) so that shows my thinking towards lack of equity. however, I have had a change of heart since I want the house for more emotional reasons.