      
 Do Your Home Work Before Buying At IRS Home AuctionsPublished: Tuesday, February 03, 2009 Did you know the Internal Revenue Service auctions homes and property belonging to delinquent taxpayers? For as low as a few thousand dollars buyers could find themselves the proud owners of prime real estate or even exotic cars or diamond jewelry. But unlike home auctions conducted on behalf of banks and other lenders, IRS home auctions leave the buyer with a few loose ends and the potential of losing the home to the previous owner if they make good on the tax lien within six months after the home is auctioned. Some key differences between lender auctions and IRS auctions include:
Is An IRS Auction Worth It?With all these challenges, is buying foreclosed homes at an IRS auction worth the time and investment? In many cases, yes! There are a lot of property owners who own their homes outright, without mortgages. In these instances, the property would be completely free of encumbrances or liens once you paid the IRS the winning bid. The previous property owner would still have the right to redeem the property up to six months after the auction, but they would be required to pay you your purchase price, plus 20% interest. At the worst you might lose out if you had made substantial home improvements to the property. At best you would make a pretty good return on your short term investment. If the property is subject to a mortgage, you would be responsible for paying the mortgage or risk foreclosure yourself. Many of the IRS homes at auction do not carry mortgages however, because in general mortgage companies will foreclose first to secure their interest in the property. Your best bet is to use the time before the auction to investigate the title of the property thoroughly. You will go into auction knowing what liens are on the property and which ones you would be responsible for after paying the IRS. Do your home work ahead of time and you just mind find home auction bargains with the IRS! Other Recent ArticlesHome Buyer Tax Credit Extended Until April, 2010Category: Recent Articles Published: Thursday, December 10, 2009 The federal tax credit has been extended to April, 2010, including an expanded benefit to existing home owners who sell their homes and then repurchase a new primary residence valued at $800,000 or less. This could be the perfect opportunity for buyers who wanted to cash in on home auction bargains but were fearful of lower resales on their existing homes. 57,000 Foreclosures Remain in California – Lenders Scheduling More Home AuctionsCategory: Recent Articles Published: Thursday, December 03, 2009 The Southern California foreclosures market may be shifting, with fewer homes entering foreclosure than in previous quarters. However there are still 57,000 existing foreclosures statewide that need to be sold, and lenders are looking at foreclosed home auctions as a major tool to sell large numbers of foreclosures in a short amount of time. Southern California Foreclosures Still the Bulk of Home SalesCategory: Recent Articles Published: Friday, November 27, 2009 Southern California foreclosures still account for the bulk of area homes sales and lenders are finding real estate auctions the fastest and most efficient method of clearing their books of REO properties. Buying a home at auction requires a little prep work, however and the experts at homeauctionexpo.com share their insight on how to find the best auction properties.  February 2009
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