A recent transaction brought up the serious problems relating to a property sold on contract  with Foreclosure and forfeiture to the seller.   The property had been sold in 2005 on contract, and forfeited back to the seller in 2011.  The problem came up as I had sold the property in 2013 and the abstract displayed an IRS lien against the contract holder in 2009.  The recorder recorded the lien on the property they lived in and purchased on contract.   The IRS lien remained on the property and showed up on the abstract in 2013, thereby causing the sale to the buyer to be blemished and voided.  We finally, after attorney fees and  many calls to the IRS in various places, seemed to get us nowhere.  Months later the IRS miraculously filed a release of that lien based on what the attorney did or our calls?  We still do not know what caused the release.  The moral to the story is:  be very sure of your contract buyers credibility and financial ability. The contract buyers can impose a lien on the contracted property without the knowledge of the contract seller.

Merle