I have a client who has a Federal tax lien from 09 on his home. The lien is for $15,000, has a first of $205,000 and equity line of $43,000 on a home who's market value is $135,000 in Phoenix AZ. Has any one seen the IRS work with a seller to subordinate the lien in order to facilitate a sale if they get a buyer? Makes no sense for them not to they are in no business of purchasing homes and re selling them. The lien will stay with owner until paid off on his credit. IRS willnot work out payments with him he fial that obligation once with them. He has had some eriupos fiacial hardships adn want to do the right thing rather then walk away. Owner says what the sense of Short Sale if IRS will not do it why bother? I know of the too publications form 4134 and form 4235 but he still has to try and fill them out and no gurantee IRS will work with seller when they get a buyer and it goes that far in the short Sale processes.
Wayne
**********************************
like buttons
Replies
The IRS WILL remove tax liens on properties that are upside down and have no value. Don't know what state u are in, but here in CA it is a process but not that hard at all. U just have to contact them, fill out the proper forms and it takes about
2 wks to possibly 30-45 days....depends on how backed up they are but it get's done every time.
Tax lien was fine; they did not want to get any paper work until I had full approval and it took less than 4 weeks just in time for closing. They do not want any paper work until they have a letter of acceptance. Just before I knew we were going to get that from banks I submitted it all to IRS lien department with a letter stating we had approval just waiting on letter.
From what I understand it is not the tax lien you are going to have a time restraint with now but B of A. They just moved all their portfolios to AMPS and everything is starting from scratch if you have a short sale in. The new provider is trying to go through the route of the Modification first with the clients.
Good luck let me know if you experience any trouble especially with B Of A transferring loan again,
Wayne
Hello Wayne,
I just started a short sale listing today with 1st $394,000 serviced by BofA, 2nd $ 48,000 serviced by HSBC and an IRS $ 40,000Tax Lien? Current Fair Market Value approx $235,000. I was wondering, were you able to get an IRS lien release for your transaction. Thanks for your feedback
The IRS will remove the lien and allow the short sale to go through. The lien remains a personal debt. The process is painstaking and the approval is usually only good for 30 days. The approval process takes about 45-60 days so timing becomes an issue as well. Extensions have to go throught the approval process a second time - shorter but not as easy as it should be. You will need an appraisal and to complete the paperwork perfectly to avoid delays. I have attached a recap of what you will need and how the process works.
Explantion Email.pdf
Thank you, very helpful. I put a call in to the IRS Thursday to the Lien Process Operations department and to the Phx IRS office to get some clarification this is some good info you attached to question them on when I do get a call back.
Thx Again