Can I buy a house with back tax debt issues?

A home with back taxes is a house where the property owners could not pay their debt to the IRS. As a result of the non-payment of required taxes, the IRS placed a tax lien on the home. The homeowners are thus unable to sell their house, and the house can be seized and sold by the IRS in order to collect the back taxes.

Typically, these houses are sold at an auction, so you may be competing with other buyers who are also looking for a deal. You'll also have to be aware of exactly what is owed on the house and of who else might have a claim to it. For example, there may be an outstanding mortgage on the house and you might find yourself having to deal with a bank that has an ownership interest, even if you have bought the house. You could also have to deal with other creditors and liens if the homeowner defaulted on other debts in addition to their taxes. Evicting a homeowner may also become necessary, as sometimes the person who couldn't pay his taxes is still living in the house.

This all means that while you can buy a home with back taxes, you should do so only after careful consultation with an attorney who can explain to you what you are getting into and who can help you to do due diligence to ensure that the house you are getting won't end up costing you a whole lot in the long run.