[DML] Re: Cars at IRS Auction

["David Teitelbaum" <jtrealty@xxxxxxxxxxxxx>]

I will defer to your superior knowledge on the subject but I would
still caution anyone buying a car at a sale like this to at least
consider the possablility of other incuberances on the title. The IRS
cannot issue titles. Only the States can. Although the IRS is legally
obligated to notify others with an interest in the property they may
not or they may just not research it properly enough to find all of
the other parties with an interest. As always "Buyer Beware". Besides,
if the State issues a title based on this auction it will say in some
form of language that the issuance of the title is no guarantee that
there are no security interests in the vehicle. This applies to ANY
car titled after an auction. The best form of protection is a title
search and knowing the chain-of-ownership. Not too long ago there was
a big scandal in New York on Long Island. There was a Sheriff's sale
of impounded cars. Many had loans or liens. When the new owners tried
to title and register the cars the banks came foward and repossesed
the cars. Everyone cried foul and the Sheriff's office had to reverse
the sales and turn the cars over to the banks. Cars are a unique item
in that they are titled like Real Estate. Transactions are recorded
and are public record. I only mention this to warn of the
possabilities in buying cars at an auction.


--- In dmcnews@xxxxxxxxxxxxxxx, lordshill@xxxx wrote:
>
>  
> Dave... The IRS must list the senior lien holders to the public.  The  
> Federal Tax Lien sale will extinguish any junior lien holder.  In
this  particular 
> case the only creditor listed is the IRS.  The form that the IRS 
issues would 
> have listed both senior and junior lien in addition to the Federal 
Tax liens. 
>  In fact the IRS is required to notify both junior and senior 
creditors.  In 
> this particular case there are none.  How a Federal Tax  Lien
competes with 
> various forms of creditor filings (UCC-1; Judgements;Liens  etc)
depends upon 
> the property in question.  I taught Federal Tax law for  years while
employed 
> by the IRS and it is a difficult subject to  understand.  In this case 
> (Delorean; Bentley; etc) the winner of the  auction will be
receiving a certificate of 
> sale that can be used to secure a  clean title upon registration of the 
> vehicle.  
>  
> Roy
> 0893
>  
>  
> In a message dated 11/23/2005 10:53:50 A.M. Eastern Standard Time,  
> jtrealty@xxxx writes:
> 
> When you  buy a car at an auction like this it is up to the bidder to
> know (or  assume) any liens or encumberances that may or may not be on
> the title of  these cars. The only thing the IRS can say is that THEY
> (the IRS) no longer  have any claim on the title. As many of you may
> know the IRS can come  before any other claims like a bank so if you
> bid on any of these cars be  warned that before you will be able to
> title and register any of these cars  you may have to satisfy a loan or
> a lien. If you do not you may find that  the car will be repossesed by
> a bank.
> David Teitelbaum
> vin  10757
> 
> 
>  
> 
> 
> [Non-text portions of this message have been removed]
>









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