IRS Resale

Investor Payoff $160,000

Tax Lien $ 20,000

IRS Credit Bid $180,000

What happens if someone bids $180,001? The IRS gets $20,000. You get $160,001. Are you seeing something smart for you to do here? Bid! Bid at least $186,000. That way you protect your $6,000 in repairs and fix-up expenses.

If you are so shaken by this whole IRS resale and just want to get out, you hope someone will bid $186,001.

IRS Resale

Winning Bid $186,001

Tax Lien $ 20,000

Money to You $166,001

Last piece. What if your $186,000 bid was the winning bid? You would have to pay the IRS $20,000 to have it release the lien from your property. A hard lesson to learn, but you still may come out with a nice profit if you can flip the property for over $200,000. Lets say you can get $201,000 at a C.Y.A. sale (just think about it for a second).

You would get back the $160,000 you paid at the foreclosure sale to the lender. You would get back the $20,000 you paid IRS. You would get back the $6,000 in repairs and fix-up. You would make a $15,000 profit. How many gray hairs did you say you got on this deal?

C.Y.A. Sale

Purchase Price $201,000

Foreclosure Price $160,000

IRS Lien $ 20,000

Repairs and Fix-Up $ 6,000

Profit $ 15,000

Senior Lien

If the tax lien is senior to the foreclosing lender, the buyer at the foreclosure sale takes title to the property subject to the existing IRS tax

lien. It may be difficult to receive marketable title to the property for resale while the tax lien remains on the property.

Sometimes the buyer of the foreclosure can negotiate with the IRS. By paying part of the tax lien amount, the IRS may remove the entire lien. The IRS tax liens cloud the property title,which affects transferabil-ity of the title. If you cant transfer title, it makes a property very difficult, if not impossible, to sell.

We are going to share with you three types of IRS foreclosures. All three are in the form of public auctions.The first is a public auction conducted by the IRS that looks very similar to a foreclosure auction. The second is a mail-in bid for public auction, also conducted by the IRS. This is similar to an FHA or VA bid process. The third is an IRS judicial auction conducted under the auspices of a U.S. District Court as a civil action.

NOTICE OF PUBLIC AUCTION SALE

Under authority of Internal Revenue Code 6331, the property described here has been seized for nonpayment of internal revenue taxes.The property will be sold at public auction as provided by Internal Revenue Code 6335 and related regulations.

Date June 15, 2005 Time 10:00 a.m.

Sale Location South end of the courthouse steps Nature of Title

The right, title, and interest of the taxpayer in and to the property is offered for sale subject to any prior valid outstanding mortgages, encumbrances, or other liens in favor of third parties against the taxpayer that are superior to the lien of the United States.

All property is offered for sale where is and as is and without recourse against the United States. No guaranty or condition of any of the property, or its fitness for any use or purpose. No claim will be considered for allowance or adjustment or for rescission of the sale based on failure of the property to conform with any expressed or implied representation.

Description of Property

Property May Be Inspected At

The Terms of Payment

20% of highest bid due within two hours from auction conclusion and balance paid in full within 30 days from auction.

Form of Payment

All payment must be by cash, certified, cashiers or treasurers check drawn on any bank or trust company incorporated under the laws of the United States. Payment may also be made by any United State Postal, bank, express or telegraph money order. Make check or money order payable to the United States Treasury.

Additional Information

If you want additional information about the property and proposed sale, please contact the office at the address below.

Mary Beth Justice

Property Appraisal & Liquidation Specialist

Address

Phone Fax

Mary Beth Justice is the IRS version of a combination real estate broker and lenders REO manager. Lets take a look at the second IRS foreclosure. The mail-in bid may be done for properties located in remote locations.

MAIL-IN BID FOR PUBLIC AUCTION SALE

I, the undersigned, bid $ on offered for

sale by public auction on . I enclose my payment of $ ,

which is 20% of my bid and authorize the enclosed payment to be applied against the sale price if I am the successful bidder. I understand that this mail-in bid must be received at the address

below by to be included in the sale, with the

balance due to be paid in full no later than . Note:

The form of payment and/or bid must comply with the Terms of Payment as stated on the Notice of Public Auction Sale.

Bidders Name (Print)

Bidders Phone Number

Bidders Address