An IRS lien is a difficult problem to face. Many tax delinquent payers have lost their properties and possession because of it. But can it be removed? It is possible to get a removal of an IRS tax lien although it is not a simple task to do. Here are two things you must accomplish:
a. Show proof that the lien filed against your property would create economic hardship to you.
b. Provide evidence that if the lien is removed, it would help speed up the tax debt collection.
In simple words, you need to show to the IRS that the lien would leave you with an empty pocket. Also, you want to resolve your tax debt that is why you’d like it to be removed.
When you want to attend tax lien auctions, it is very important to closely examine the property. You will never know if the homeowner failed to provide the required payments which can grant you full ownership of the property. You must also adjust your schedule no matter how busy it is. Make sure you’re vacant on the time and date of the sale. If not, check out if online bidding is allowed on the county’s website.
Tax lien sale is a good opportunity especially if you know the system. Scrutinize, evaluate, and set a budget for every property in the auction lists so that you can surely afford its lien. Remember to be cautious with every action and utilize the internet to your advantage. Do this and you’ll be getting big profits and become a seasoned property investor soon.
Sale of tax lien is an alternative way of property investing. When a homeowner defaults in his taxpaying obligations to the government, the county places a lien on his property. Then, they sell it to interested investors at a tax sale. The county needs to do this so that they can recover unpaid property taxes and provide public services.
Tax lien sales are implemented in different options such as bidding for the lien and buying it over the counter. Also, each county have their own procedures and laws used for the bidding. Bid types are the regular rotational bidding style and the bid down the interest method.
Furthermore, when it comes to the interest and redemption, each state has its own regulations too. The redemption period is different for each as well as the interest rates. This is why due diligence and lots of research is needed for every property that the investor is interested in. Know the procedures of the sale, requirements, terms and conditions before buying a lien.