Flipper/Rehabber · Loomis, CA · Member since 2016 · 6 posts · 0 votes
I acquired a property from an IRS auction. The sale occurred on 7/28/16. The 180 redemption period ended on 1/24/17. I received the Quick Claim Deed from the IRS on 1/31/17. I have since remodeled and have the property under contract. I have tried to obtain a title insurance policy from 3 title companies (Title Security, Stewart Title and Fidelity) and have been declined by all three. They have requested copies of all the notices the IRS sent to the former owner. The IRS refuses to release any documentation because they state it is against the Privacy Act. Has anyone run into this and what is my solution? Any advise or contacts would be greatly appreciated.
We have a bought a few properties from the IRS never had this issue. After the waiting period when you get your quit claim deed you should be able to get title. If you have Fidelity National title in your area talk to the main guy there. They should be able to help.
Rental Property Investor · Kansas City · Member since 2019 · 15 posts · 5 votes
6y
@Travis Hannon Hey Travis, I’m running into the same issue, did you end up using fidelity ? I’m in contract as well and the title company our realtor chose is also unfamiliar with process and will not issue a policy.
Rental Property Investor · Kansas City · Member since 2019 · 15 posts · 5 votes
6y
@Andrew Holmes I’m going to cal fidelity do you have a contact familiar with the process? We’re in the middle of closing and the current title company does not understand the process. A contact sure would be helpful. Thank you!
Rental Property Investor · Chicago, IL · Member since 2015 · 275 posts · 271 votes
6y
@Christina McIntosh@Travis Hannon - I don't know the local contact for fidelity. I not able to give you number on here. Just send me a message on here an I will send the contact in Chicago they will help you find with someone in your town.
Flipper/Rehabber · Loomis, CA · Member since 2016 · 6 posts · 0 votes
6y
@Christina McIntosh
I went around in circles on this issue. I received title to the property and renovated the home. I listed it for sale and lost two buyers through the process because I was never able to find a title company willing to underwrite a title insurance policy at that time. The title companies ultimately play by their own rules and are not willing to take any necessary risk. Essentially their point of view is they had no way of knowing whether or not the IRS followed protocol and seized the property properly. If the owner came back and fought the process on grounds they were not properly notified or anything then the title company’s fear is that the transfer would be void able. My argument to then was that regardless of whether it was done properly the redemption period lapsed. The IRS was absolutely no help because they refused to provide any documents containing the original taxpayers name due to privacy laws. Needless to say they didn’t buy into my argument and I contacted literally every big and small title company in Arizona. Ultimately I got one company to say if I held the property for a period of 2 years then they would underwrite a policy. I rented the property and sold it after a year lease (ended up owning for a little over two years total). Things are constantly changing though and none of their rules are set in stone. I was just notified by a title company they would now require the property to be held for 10 years before they would underwrite a policy. Unfortunately I lived through the process but really can’t offer much advice other than keep contacting as many title companies as possible.