Has anyone participated in IRS Tax auctions?

Question

Looking to find property good buys (low price) and have come across IRS tax sale auctions, just wanted to find out if anyone has ever bought property this way? Thanks.

It's sourced through the fed gov't if this means anything at all.

http://www.treasury.gov/auctions/treasury/rp/

Christina McIntosh · Answer

@Todd Morrill

I’ve been purchasing properties from IRS Auctions for the last 3 years.

The PAL agent can really give you all the info about the encumbrances on the property and what liens stay and what are extinguished.

Pretty much if it’s not a judicial sale you’ll owe senior liens like mortgages - so you’ve got to look out and make sure that the property your buying is actually being foreclosed by IRS or you’ll be responsible for paying the senior encumbrance and the senior can foreclose on you after your redemption period. Then your out the money you gave IRS.

Only issue I’m running into now is I’m selling a property and  finding a title company that will issue a policy is more difficult than expected!

Robert D. · Answer

you need to know what you are buying on auction. there are various types of auctions. some will give you clear title  some will leave it up to you to secure title. they will give you the deed and wish you good luck. if you don't know what you are doing you might end up buying 2nd mortgage and once the 1st one forecloses week later you are out of luck...

Todd Morrill · Answer

thanks, like all auctions a bid is an agreement to buy

Account Closed · Answer

I did many years ago and never bought anything because the property in a good area bid really high and the ones in the hood and war zone no one wanted them. Make sure you read their terms because if you are the highest bidder, you cannot  back out.

Joe Gore