Replies to This Discussion

Permalink Reply by Gunnar Jonsson on March 16, 2010 at 5:43pm

Is it a state or federal lien??

Permalink Reply by Katerina Gasset on March 16, 2010 at 5:51pm

I don't understand why a prelim title was not pulled at the request of the listing agent before they even took the listing? Or at least before they submitted a HUD?

You now have to explain this to BofA. The IRS may be able to lift this so that you can give clean title. You will have to contact the IRS about it and see what they will do to help get the deal closed since there is no money coming to the seller.

Permalink Reply by CPort on March 16, 2010 at 5:57pm

Don't know if it's state or federal yet, just found out about it.

All we know right now is the line was filed recently - during the final approvals as it were, before the whole thing went through equator, etc. So i'm assuming that even if the sellers agent had pulled this it wouldn't have shown.

Is it within our rights to contact the IRS directly regarding the lien even though we are entering into this as buyers ? (i know during the short sale it was really between the seller and the lender and we had no place contacting either)

Permalink Reply by Gunnar Jonsson on March 16, 2010 at 6:03pm

I have done lot of IRS and state tax liens, no problems at all. The seller need to contact IRS and he/she need to supply 1. the approval letter 2. a full appraisal ( I usually try to get a copy of th buyers appraisal ).

The average time frame for a IRS lien is somewhere between 10-15 day.

Good Luck

CPort said:

Don't know if it's state or federal yet, just found out about it.

All we know right now is the line was filed recently - during the final approvals as it were, before the whole thing went through equator, etc. So i'm assuming that even if the sellers agent had pulled this it wouldn't have shown.

Is it within our rights to contact the IRS directly regarding the lien even though we are entering into this as buyers ? (i know during the short sale it was really between the seller and the lender and we had no place contacting either)

Permalink Reply by Sam Purtle on March 17, 2010 at 1:27pm

CPort -

I also have had great success in removing IRS tax liens from properties -

here is a brief summary:

1. Getting a Federal IRS tax lien removed is handled by the Special Procedures Department of the IRS.
2. specifically the seller needs to ask for a tax lien discharge and I am attaching the link to the document that explains the procedure in detail. http://www.irs.gov/pub/irs-pdf/p783.pdf
3. Whoever is planning to deal with the IRS needs to have a third party authorization completed by the homeowner (tax payer) which is form 12180 but I cannot find it on the IRS site.
4. Publication 4235 provides a list of Collection Advisory Goups by State and someone needs to call the number specific to the state and request both the E-Z application for Federal Tax Lien Cerificate of Discharge as well as form 12180
here is the link for the advisory groups: http://www.irs.gov/pub/irs-pdf/p4235.pdf

The IRS will need the following:
1. Copy of the Notice of Federal Tax Lien which has a file number on it
2. Purchase and Sale Agreement or Loan Agreement
3. Title Report
4. recent appraisal from a disinterested source to establish value
5. Estimated HUD-1 showing proposed payments
6. Balance due on all encumbrances. They will more than likely require payoff demand letters on all liens.
7. A statement of relationship between the taxpayer to purchaser (non arms length v. arms length)
I also usually write up a good letter covering the fact that the property is overencumbered by liens and that the lender has agreed to a short payoff.
8. I have always offered the IRS a nominal amount such as $1000 as consideration to remove the tax lien from the property but recently several of my associates have successfully negotiated with the IRS for zero consideration.

Hope this helps. Please keep us updated as to what happens.