The Internal Revenue Service (IRS) may assume ownership of property from the defaulted taxpayer. There are no exemptions given. Existing properties, even real estate, are not exempt from the threat of seizure. The Internal Revenue Service is also responsible for getting the properties they seize up for bid at auction. This auction conducting is to be advertised and is open to public as per the law.
There are specific things you should know before bidding on real estate offered at an IRS auction.
In the first place, you must realize that bidding for IRS real estate is different from a Fannie, Freddie Mac, or HUD auction. In reality this is a property auction for items captured when people didn’t make tax payments. There are a variety of regulations for these types of auctions.
Do you owe money on the property? You can be confident that the Internal Revenue Service will investigate to determine this. If you look at the website of the Internal Revenue Service, you will find this explanation:
Form 2434-B is a list of properties for which our office will provide full disclosure in regards to hindrances or claims held against said properties. They won’t guarantee you correct, complete information. If you plan to bid on an item at this auction, use the information to help determine the value of each item. Let the buyer beware! Buyer beware when you bid on these items! When the IRS sells property, it is done through a Quit-Claim Deed. Be sure to check with the PALS to see if another party has researched the whereabouts and history of the title.
After you won a IRS real estate bid there is a period of 180 days, in this time any mortgage companies or others who are interested can put a reclaim on the real estate. The Internal Revenue Service can’t give you a guarantee. They inform you in advance that merchandise you bid on is sold “as is, where is” which implies that you take it in it’s current condition, and whatever repair it requires, you are responsible for. It is unfortunate if you are unhappy about this afterwards. It is not possible to initiate legal proceedings against the IRS.
