We have a straightforward real estate transaction that we would like to complete. This is not considered a short sale. However, an IRS lien attached to the property does indeed make this a short sale if paid off in full.
I've done some research and have found a Certificate of Discharge from Federal Tax Lien form. I assume this is the way to go, but I was curious if anyone has had a similar situation. If so, did the IRS handle the transaction as a short sale on their own? Or did they just require some form of request for the lien to be released so that the traditional sale could be finalized? Any tips?
http://www.irs.gov/pub/irs-pdf/p783.pdf
Thanks in advance
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Replies
Yes, you can approach the IRS - we have used - 14135 Application for Certificate of Discharge of Property from Federal Tax Lien before. Be aware if the IRS sees any payments being paid out to a lien holder in a "lesser" position than them, they will request that payment, but otherwise they should release - we've always offered them SOMETHING from the first lien holder, but on our sales they've released for $1000 or so.
They are decent to deal with and you should have an answer in less than 6 weeks. Good luck.
Gordon,
We would reach out to the IRS and discuss what is needed to be done for a partial release of lien. Anything beyond any outstanding mortgage holders or liens that hold seniority over the IRS lien will be payed first and whatever is left over will be likely assumed by the IRS. On a daily basis we have worked with the IRS and able to accomplish similar scenarios.
310-564-6389
Brett@ishortsalenow.com
www.ishortsalenow.com