Corrected entry: If Happy has enough money to bid on his Grandmother's house then he has enough money to pay the back taxes to the IRS and stop the auction. Also, the IRS only cares about the taxes, anything bid over the tax amount is returned to the owner. Happy could bid a million dollars and win, at which point he'd have to pay his own Grandmother, something we can probably assume she wouldn't sue him for, given their relationship.
rswarrior
4th Nov 2008
Happy Gilmore (1996)
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Correction: Except that the IRS gives a specified time to pay the taxes. IE, if the taxes are not paid by such and such a date, the auction will proceed. Happy didn't have enough money by the deadline, but did have enough once the auction started. The IRS would take the taxes owed out, and any money over the amount would go to the owner, however, the person purchasing the house can still force her to move out. Any bid at an auction is legally binding and would have to be paid. There are laws against this, and laws against bidding on your own property (or property of a friend or family member) to jack the price up.
rswarrior