| While the IRS will auction off just about anything to | | | | issue you need to understand. Although you may win |
| satisfy a tax bill, seized real estate gets people | | | | the auction, the delinquent taxpayer has the right to |
| excited. Here are the basics of IRS real estate | | | | buy the property back from you for a period of 180 |
| auctions you need to know.Understand IRS Real | | | | days. If the taxpayer exercised their option during |
| Estate AuctionsDoes the IRS really seize homes and | | | | this redemption period, they must repay you the |
| then auction them off? Yes. The seizures occur from | | | | amount you bid. They also must pay you interest on |
| wayward taxpayers who never pay their taxes and | | | | the bid amount at a rate equal to 20 percent annually. |
| seizures of crime-inspired purchases such as those | | | | Put in simple terms, you may not actually get the |
| from drug dealers and such. Before you run off to | | | | property, but you will make money on your |
| bid on these seized homes, however, you want to | | | | investment. In a majority of cases, the right to |
| keep some things in mind.The first thing to keep in | | | | redeem is exercised by taxpayers.If you are |
| mind is the property is offered as-is. The IRS makes | | | | considering bidding at IRS real estate auctions, you |
| absolutely no guarantees regarding the soundness of | | | | may want to sit down with a knowledgeable lawyer |
| the structure, the quality of title and so on. If you | | | | before hand. Although the IRS is a federal agency, |
| win, the IRS simply issues you a quit claim deed to | | | | state law controls many of the issues related to title |
| the property and moves on.The second thing to | | | | and 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 are | | | | In this case, it is truly buyer beware!Richard A. Chapo |
| allowed. None! Make sure to read the notice of | | | | is with Business Tax Recovery - providing information |
| auction closely to understand what is required of | | | | on taxes. |
| you.With real estate tax auctions, there is another | | | | |