The Internal Revenue Service (I.R.S.) has the authority to assume the property of the person who defaults on his taxes. No exceptions are made. Any physical piece of property may be subject to seizure, even real estate.
The Internal Revenue Service is also responsible for getting the properties they seize up for bid at auction. According to the law, the auction has to be advertised and open to everyone.
If you're interested in bidding at an IRS real estate auction, you need to realize a few things first.
It's important to note that foreclosure bidding by companies such as Fannie, Freddie Mac, or HUD are not synonymous with IRS real estate bidding. In reality, it was the auction of property captured because the tax payments were not made. There are different rules for these types of auctions.
Does the property carry some kind of mortgage? You can be sure that the Internal Revenue Service will make sure. The IRS website tells you that they give you information regarding claims on the property. It is not guaranteed that you will be received the correct and complete information. Prospective bidders will be provided with information to assist them in determining auction item values. Caveat Emptor! You must be cautious when you are bidding on items like these! Quit-Claim Deed conveys real estate that is for sale by the IRS. It's probably best to contact the PALS to see if a third party title search has been requested.
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Any property you win at an IRS auction will be without warranty. The Internal Revenue Service can't give you a guarantee. They tell you right up front that any property you bid on is "as is" and "where is", meaning you accept it as it stands, and anything that needs to be done with it, you will do! It is sad that you are dissatisfied later, when it is too late to do anything about it. It is not possible to initiate legal proceedings against the IRS.
Posted by otissparks2946
at 10:46 AM EST

