Both my seller's got divorced earlier this year. Unfortunately, after receiving approval, I find out the husband has an unpaid tax judgement against him for about 70k. He is not on mortgage, only on deed, but obviously this will prevent us from moving forward. He is very uncooperative and will not return anyone's phone calls. Does anybody know if I am able to reach the state and ask them to lift judgement for the sake of the short sale? They can pursue the judgement on her ex, but I want them to allow the sale of the home.
Any advice or ideas would be greatly appreciated.
If he is not responding you may have a problem settling regardless as he will have to sign off on deed regardless of the lien. I am pretty sure either way he would have to get involved to get the lien lifted from the sale. Not so sure what process is for a state tax lien but the IRS usually no problem just will take 45 days or so.
Is it IRS or state?
State Tax Lien. Have you ever dealt with anything like this?
That's why you should always pull title the minute you execute a conract.
Anyways, he has to fill out paperwork, so if he is uncooperative it can't be done, but google irs 14135 form and you'll find the directions to do it. You will have to likely get a short sale approval extension as it takes a few weeks to be granted a release.
I usually always pull title when I receive a ratified contract, but obtained approval so quickly.
The IRS has a specific 'Short Sale' process for federal liens. I'd be surprised if nearly all states did not have a counterpart. That said, they won't even talk to you until you have a power of attorney ON THEIR FORM signed by the taxpayer. So I think you'll be SOL if the taxpayer is not cooperative. Sorry for the crap news.
I can only speak for my State (PA) but the folks in Harrisburg won't negotiate. What you can do - however (and only with his coop) is approach them to initiate a payment plan. I have done this and with the payment plan the title company was able to clear the lien. Let us know how you make out.