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Answered
How does the redemption period for an IRS lien impact the transfer of ownership after a foreclosure sale?

How does the redemption period for an IRS lien impact the transfer of ownership after a Florida county foreclosure auction, and what strategies can be used to minimize risks associated with this redemption right

  
  
Posted 2 months ago
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Answers


In a Florida county foreclosure auction, the IRS has a 120-day redemption period following the sale, during which they can reclaim the property by paying the winning bid amount plus interest. This means that even after you've won the auction, the IRS can potentially take the property back within this timeframe.

You can negotiate with the IRS; I have done this before, which is very time-consuming but doable. The forms are all on the IRS website and relatively easy to complete, but in my experience, they often don't act unless there's significant equity.

But I urge you not to make substantial improvements until the redemption period expires to prevent potential losses.

I have never seen or heard the IRS redeem a property after a foreclosure auction, but that does not mean it has never happened; I am sure it has, but I think it is scarce.

The good thing is that many of your competitors at the foreclosure auction will run away at the sheer mention of the acronym IRS. I, however, used to run to them, and as they say," All good things come to those who wait."

  
  
Posted 2 months ago
Edited 2 months ago
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1 Answer
2 months ago
2 months ago

Miami Dade County Foreclosure Schedule

Miami Dade County Foreclosure Auctions: