he IRS is also responsible for getting the properties they seize up for bid at auction. According to the law, the auction has to be advertised and open to everyone.

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

First of all understand that an IRS real estate bidding is not same as a foreclosure bidding by Fannie, Freddie Mac, or HUD. This is when properties that have been seized due to taxes not being paid are auctioned. A different set of rules apply to these particular actions.

Is the property currently mortgaged? You can be sure that the Internal Revenue Service will make sure. When you go to the IRS website you will find the following words:

Our offices will apprise you of any bottleneck that is known of against or other claims on the property that is listed on form 2434-B. You cannot be sure that the information you receive will be entirely correct or complete. We furnish this information solely to assist you in making valuation and bidding decisions. Let the buyer beware! You must be cautious when you are bidding on items like these! Real Estate that the IRS sells is conveyed by Quit-Claim Deed. It’s a good idea to contact PALS to see if anyone else has either ordered or performed a 3rd party title search.

A common waiting period is 180 days after a winning IRS Real Estate bid to ensure other interest parties can have a chance to claim it. The IRS can’t give you a guarantee. You should be aware that when the property is listed as ‘as is’ and ‘where is’, that literally means you are bidding on a property that will not be changed. It is unfortunate if you are unhappy about this afterwards. For internal revenue service you cannot sue.