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
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.