About IRS Auctions
61About IRS Auctions
The Internal Revenue Service (IRS) has the potential of capturing the property from the taxpayer who defaulted. No exceptions are made. Existing properties, even real estate, are not exempt from the threat of seizure.
The IRS is also responsible for getting the properties they seize up for bid at auction. This auction will be advertised and open to the general public.
There are specific things you should know before bidding on real estate offered at an IRS auction.
Enter into this with the understanding that IRS real estate bidding is different from foreclosure bidding handled through Fannie Mae, Freddie Mac, or HUD. This is when properties that have been seized due to taxes not being paid are auctioned. There are a variety of regulations for these types of auctions.
Do you owe money on the property? You can be confident in knowing that the Internal Revenue Service will verify that. 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. The bidders are the ones that decide the value of the item being auctioned, this additional information is provided to assist you. Let the buyer beware! The phrase is 'buyer beware' when you bid on auction items. Real Estate that the IRS sells is conveyed by Quit-Claim Deed. Be sure to check with the PALS to see if another party has researched the whereabouts and history of the title.
A common waiting period is 180 days after a winning IRS Real Estate bid to ensure other interest parties can have a chance to claim it. The IRS 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. If at a later point you are displeased with this, that is too bad. It is not possible to initiate legal proceedings against the IRS.
