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What happened when the title search was done? Where liens there at that time? Since this was a foreclosure any liens present should have been wiped by the foreclosure.It is possible the Seller owed the IRS and they have not yet placed a lien on the home, they have 120 days to place the lien.If there really are IRS liens, your Buyer is probably lucky they found out before closing.
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For Sale: $850,000
For Sale: $124,500
For Sale: $995,000