I have a short sale with Wells Fargo. The investor is FHA. Seller has an IRS tax lien that she is paying monthly.
Wells Fargo will not let us start the short sale until the IRS give us a certificate of discharge.
The IRS will not give us a certificate of discharge until we receive an approval letter from Wells Fargo.
We are stuck.
Does anyone have any suggestions?
Thank you,
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Thank you Ben, seller has submitted these documents to the IRS however they are telling her she needs an approval letter from Wells Fargo before they will grant the release of lien. The seller sent in the purchase agreement, HUD, appraisal and all the other documents they requested and then they told her she need the approval letter.
When we check with Wells Fargo, they will not open the file until we have a release of lien from the IRS.
So we are stuck.
Theoretically could you just send the IRS a payoff letter from the 1st mortgage for the full amount? They could use that to issue their release. Then take that to the 1st and get the short sale approved, and then ammend the letter with the IRS?
Thank you Neil, I suppose we can obtain a payoff demand from the lender and give IRS this demand letter but the seller has told them she was selling her property in a short sale and they have asked her for the approval letter.
I'm working on a file now - total of all (4) mortgages is about $1.4 Million. In addition, an IRS lien is over $35,000. sale price is les than $400,000. IRS will not release lien without Short Sale Approvals from all lenders (which we now have) Seller will be meeting with IRS in person and was told the Release of Lien against the Real Estate will be approximately 6 weeks after the meeting
Sounds like you were able to get all the lenders to work with you.
Wells Fargo is telling us because FHA is the investor, they require a release of lien prior initiating a short sale and the IRS wants an short sale approval before they will give us a release of lien.
thank you,
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