1. Bank won't remove this lien because the IRS lien is superior.
2. Title insurance usually include separate "exceptions" to coverage. This "exceptions" includes all the liens insurance company found during title search and they are not covered by the title insurance.
I would think the IRS lien would appear in this "exception". See schedule B-2 in this document.
IRS has 120 days from the date of sale to recoup the money. Since it's bank owned, the bank probably assumed the property at the foreclosure. Previous owner's IRS lien stays 120 days. If the house is not sold or refinanced within 120 days of the sale, IRS loses the right and the lien should fall off. If the bank sells it within 120 days, it's the bank's responsibility. Either way, you should be fine. Check with the bank or title officer with foreclosure experience to get clarification in writing.
Thanks, pop01, glad to learn 120 days rule make me safe
"IRS liens will stay on a property even after foreclosure under certain circumstances. So, buying a home at a foreclosure auction will not extinguish this lien immediately. There is a chance, however, that a buyer may not have to pay up. If the IRS doesn’t exercise its redemption right within 120 days of the a new deed being recorded, it will expire. " , If IRS make redemption within 120 days, that will be the seller's (Bank) responsibility.
Bank owned 房子过户前进行 title search 时发现前房主欠 IRS 税，Bank 会清掉这个lien吗？
Owner's title insurance 会保这个已经发现的lien吗？
多谢
1. Bank won't remove this lien because the IRS lien is superior.
2. Title insurance usually include separate "exceptions" to coverage. This "exceptions" includes all the liens insurance company found during title search and they are not covered by the title insurance.
I would think the IRS lien would appear in this "exception". See schedule B-2 in this document.
https://www.gofirstam.com/resources/real-estate-agents/what-to-look-for-on-the-title-commitment.html
怕卖不掉？
IRS has 120 days from the date of sale to recoup the money. Since it's bank owned, the bank probably assumed the property at the foreclosure. Previous owner's IRS lien stays 120 days. If the house is not sold or refinanced within 120 days of the sale, IRS loses the right and the lien should fall off. If the bank sells it within 120 days, it's the bank's responsibility. Either way, you should be fine. Check with the bank or title officer with foreclosure experience to get clarification in writing.
Thanks, pop01, glad to learn 120 days rule make me safe
"IRS liens will stay on a property even after foreclosure under certain circumstances. So, buying a home at a foreclosure auction will not extinguish this lien immediately. There is a chance, however, that a buyer may not have to pay up. If the IRS doesn’t exercise its redemption right within 120 days of the a new deed being recorded, it will expire. " , If IRS make redemption within 120 days, that will be the seller's (Bank) responsibility.
most liens should be released, wait to see