Understand IRS Real Estate Auctions

While the IRS will auction off just about anything toissue you need to understand. Although you may win
satisfy a tax bill, seized real estate gets peoplethe auction, the delinquent taxpayer has the right to
excited. Here are the basics of IRS real estatebuy the property back from you for a period of 180
auctions you need to know.Understand IRS Realdays. If the taxpayer exercised their option during
Estate AuctionsDoes the IRS really seize homes andthis redemption period, they must repay you the
then auction them off? Yes. The seizures occur fromamount you bid. They also must pay you interest on
wayward taxpayers who never pay their taxes andthe bid amount at a rate equal to 20 percent annually.
seizures of crime-inspired purchases such as thosePut in simple terms, you may not actually get the
from drug dealers and such. Before you run off toproperty, but you will make money on your
bid on these seized homes, however, you want toinvestment. In a majority of cases, the right to
keep some things in mind.The first thing to keep inredeem is exercised by taxpayers.If you are
mind is the property is offered as-is. The IRS makesconsidering bidding at IRS real estate auctions, you
absolutely no guarantees regarding the soundness ofmay want to sit down with a knowledgeable lawyer
the structure, the quality of title and so on. If youbefore hand. Although the IRS is a federal agency,
win, the IRS simply issues you a quit claim deed tostate law controls many of the issues related to title
the property and moves on.The second thing toand so on. Every state has particular laws and none
remember is you have to pay cash for the property.of them seem to be the same. If you are not
Yes, cash. Okay, you can pay with certified checks,careful, you can end up in a mess instead of a house.
but no financing, personal checks or credit cards areIn this case, it is truly buyer beware!Richard A. Chapo
allowed. None! Make sure to read the notice ofis with Business Tax Recovery - providing information
auction closely to understand what is required ofon taxes.
you.With real estate tax auctions, there is another