In the event a lender forecloses on a property with an IRS lien, the IRS has 120 calendar days to redeem the property. The IRS regulations require that before IRS can request money from the U. S. Treasury to buy the property, IRS must first obtain a guaranteed bid at the price paid to redeem the property. If GSA can obtain a guaranteed bidder before the listing expires, then the IRS will exercise its redemption rights. Without the guaranteed bid, the IRS would not have an opportunity to recover any revenue. To encourage guaranteed bids, we provide this incentive fee.
Incentive fees are payable at closing.
But remember you must be ready, willing, and able to buy the property, if we can t sell it for more than the MBP at the public sale. The announcement states that if no higher guaranteed bid is received within 3 business days, we will accept the guaranteed bid we have. The highest bid received will be considered for award. In the event two or more bids are received that are equal in all respects, the first such bid received will be considered. A. IRS recovers the amount of the tax lien and sale expenses from the sale proceeds.