IRS Auction

The Internal Revenue Service (I.R.S.) has got the power to capture the property of the defaulted taxpayer. There is no exemption given. 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 conducting is to be advertised and is open to public as per the law.

If you want to bid at an IRS real estate auction, then you should be aware of certain things.

In the first place, you need to be aware that IRS real estate bidding is different from bidding because of foreclosure by either Fannie Mae, Freddie Mac or HUD. This is when properties that have been seized due to taxes not being paid are auctioned. There are different rules 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. Upon visiting the Internal Revenue Service's website, you will discover that the site reads: We will provide you with any information about any hindrances or other claims on the property in Form 2434-B. They won't guarantee you correct, complete information. This information is furnished solely to assist you, the potential bidder, in determining the worth of the merchandise up for auction. May the buyer beware! Buyer beware when you bid on these items! When the Internal Revenue Service sells real estate it is conveyed by Quit-Claim Deed. In order to learn whether someone else has requested a third party title search, you need to contact PALS.

In the 180 day period after winning a real estate bid offered by any IRS auctions you can anticipate that any mortgage company or any other interested party may step forward to try and reclaim the real estate. Property won at an IRS auction does not include a warranty. The IRS can't give you a guarantee. They will let you know up front that the property available to be bid on is being sold "as is" and "where is." You are buying it exactly how it is and if there is work to be done to it, it is up to you. If one feels unhappy after the action has already happened, it is too bad. You cannot sue the Internal Revenue Service.