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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Replies to This Discussion

You will need one of these forms in order to get teh IRS lien removed (someone you spoke to at the IRS is mistaken):
IRS Form 8821 - this is the IRS authorization Form and it goes to fax 859-669-3805
http://www.irs.gov/pub/irs-pdf/f8821.pdf

and

IRS Form 14135 (this is to remove Federal Tax Liens) and it goes to fax 804-916-8060
Available at - http://www.irs.gov/pub/irs-pdf/f14135.pdf


I have had 3 short sales that had IRS liens and found them ALL to be remrkably easy to work with 2-3 weeks time adn the liens were quickly removed.

You can contact me off here directly - [email protected]

if you need assistance or contacts.

Best Of Luck!!!

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,

Sounds like you are stuck in "negotiator-land" and they generally have no authority to get things done.

A few upper level contacts or a call to HUD should get this going for you.

If you are having troubles with your short sales - CALL ME
if you are NOT having trouble with your short sales - CALL ME AND TELL ME HOW YOU DO IT!!!

Let me know if I can help.
Ben
[email protected]

I just cracked up on the second line ...

if you are NOT having trouble with your short sales - CALL ME AND TELL ME HOW YOU DO IT!!!

 

Those who work short sales have got to be some sort of adreline junkies... With over 50 short sale listings myself, I cannot tell you the roller coaster ride it has been... :-)  constant ups and downs!

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