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Redeeming Your Real Estate

Redeeming Your Real Estate After Seizure and Sale

If your real estate was seized and sold, you have redemption rights. You or anyone with an interest in the property may redeem your real estate within 180 days after the sale.

This includes:

  • your heirs, executors, administrators
  • any person having an interest in the property
  • any person having a lien interest in the property
  • any person on behalf of those previously listed

To redeem your property after sale, you must pay the successful bidder the purchase price plus interest at the rate of 20% per year, compounded daily. Contact the successful bidder to determine the date(s) payment was made to purchase the property, and count the number of days between the payment date(s) and the date you redeem the real estate. Use the following table to determine the correct amount of interest to pay:

Rev Proc 95-17, Table 45

20% Compound Rate --184 Days
Days Factor Days Factor Days Factor Days Factor
1 0.000547945 47 0.026080672 93 0.052264962 139 0.079117443
2 0.001096191 48 0.026642908 94 0.052841546 140 0.079708740
3 0.001644737 49 0.027205452 95 0.053418445 141 0.080300361
4 0.002193583 50 0.027768305 96 0.053995661 142 0.080892306
5 0.002742730 51 0.028331465 97 0.054573193 143 0.081484576
6 0.003292178 52 0.028894935 98 0.055151041 144 0.082077170
7 0.003841927 53 0.029458713 99 0.055729206 145 0.082670089
8 0.004391978 54 0.030022800 100 0.056307688 146 0.083263333
9 0.004942329 55 0.030587196 101 0.056886486 147 0.083856902
10 0.005492983 56 0.031151901 102 0.057465602 148 0.084450796
11 0.006043938 57 0.031716916 103 0.058045036 149 0.085045016
12 0.006595195 58 0.032282240 104 0.058624786 150 0.085639561
13 0.007146754 59 0.032847874 105 0.059204855 151 0.086234432
14 0.007698615 60 0.033413818 106 0.059785241 152 0.086829629
15 0.008250779 61 0.033980072 107 0.060365945 153 0.087425152
16 0.008803245 62 0.034546637 108 0.060946968 154 0.088021002
17 0.009356014 63 0.035113512 109 0.061528308 155 0.088617178
18 0.009909086 64 0.035680697 110 0.062109968 156 0.089213680
19 0.010462460 65 0.036248193 111 0.062691946 157 0.089810510
20 0.011016138 66 0.036816001 112 0.063274243 158 0.090407666
21 0.011570120 67 0.037384119 113 0.063856859 159 0.091005150
22 0.012124405 68 0.037952549 114 0.064439794 160 0.091602961
23 0.012678994 69 0.038521290 115 0.065023049 161 0.092201099
24 0.013233886 70 0.039090342 116 0.065606623 162 0.092799566
25 0.013789083 71 0.039659707 117 0.066190517 163 0.093398360
26 0.014344584 72 0.040229384 118 0.066774731 164 0.093997482
27 0.014900389 73 0.040799372 119 0.067359265 165 0.094596933
28 0.015456499 74 0.041369673 120 0.067944119 166 0.095196712
29 0.016012913 75 0.041940287 121 0.068529294 167 0.095796820
30 0.016569633 76 0.042511213 122 0.069114790 168 0.096397257
31 0.017126657 77 0.043082452 123 0.069700606 169 0.096998022
32 0.017683987 78 0.043654004 124 0.070286744 170 0.097599117
33 0.018241622 79 0.044225869 125 0.070873202 171 0.098200541
34 0.018799563 80 0.044798048 126 0.071459982 172 0.098802295
35 0.019357809 81 0.045370540 127 0.072047083 173 0.099404378
36 0.019916361 82 0.045943346 128 0.072634506 174 0.100006792
37 0.020475219 83 0.046516465 129 0.073222251 175 0.100609535
38 0.021034384 84 0.047089899 130 0.073810318 176 0.101212609
39 0.021593855 85 0.047663647 131 0.074398707 177 0.101816013
40 0.022153632 86 0.048237709 132 0.074987419 178 0.102419748
41 0.022713716 87 0.048812086 133 0.075576453 179 0.103023813
42 0.023274107 88 0.049386778 134 0.076165810 180 0.103628210
43 0.023834806 89 0.049961784 135 0.076755490 181 0.104232938
44 0.024395811 90 0.050537106 136 0.077345493 182 0.104837997
45 0.024957124 91 0.051112742 137 0.077935819 183 0.105443388
46 0.025518744 92 0.051688694 138 0.078526469 184 0.106049110

Once you make payment to the successful bidder to redeem your real estate, request the certificate of sale from him/her as proof the redemption occurred. Notify the IRS that you have redeemed the property. Generally, the Advisor who handled the seizure processing will be your point of contact. Contact the Revenue Officer who seized your property or the Property Appraisal and Liquidation Specialist (PALS) who sold your property to obtain the Advisor’s contact information. You will need to provide the following information:

  • Name and address of the taxpayer from whom property was seized and sold
  • Name and address of the person who redeemed the property (if someone other than the taxpayer)
  • Date of redemption and of the transfer of the Certificate of Sale
  • The amount paid to redeem the property (list breakdown of sale price plus interest)
  • Name and address of the person from whom the property was redeemed

If the purchaser cannot be found in the county in which the property to be redeemed is situated, or if the purchaser is evading contact in order to prevent redemption, the payment may be made to the area director for the Internal Revenue area in which the property is situated. In this instance, the payment should be made out to the United States Treasury. Generally, the Advisor who handled the seizure processing can assist you with redeeming the property. Contact the Revenue Officer who seized your property or the Property Appraisal and Liquidation Specialist (PALS) who sold your property to obtain the Advisor’s contact information.