I'm looking to purchase a re performing note on a SFR in Florida. O&E shows federal tax liens on husband/borrower for over $170K. The BPO value on the property is around $60K. There are no other liens on the property other than the first position loan that I am considering purchase.
This is my first IRS tax lien asset for consideration, so writing to see if there is possibility that the IRS would foreclose on top of my note if I end up purchasing it? Just trying to evaluate the risk on this, any comments/insights are much appreciated.
Federal tax liens stick to the real and personal property of the tax payer. I am not sure if IRS ever forecloses but if the senior mortgage forecloses, IRS has the right to redeem. Also, in order for the lien to be effective it has to be renewed I thing every 10 years (see section 5.12) of the link below