Can I sell my house if I have a tax lien?
Dec 28, 2015 by
An IRS tax lien affects different people in different ways depending on a lot of different circumstances. One concern we come across quite often is whether or not a delinquent taxpayer with an IRS tax lien can sell or refinance their home. Although a Notice of Federal Tax Lien makes it very difficult to do either, it's possible.
If you have an IRS tax lien that you cannot satisfy with a lump sum full payment and would like to sell your home, you will likely need to do two things. First, resolve your tax debt by securing a formal resolution with the IRS. Fresh Start Tax Relief can help you identify the best resolution for your specific needs. The IRS is much more willing to work with you on a solution to your tax lien if you have a formal resolution in place.
The second thing you will need to do is apply for a Certificate of Discharge of Tax Lien of Property from Federal Tax Lien. A Discharge allows the IRS to remove the lien from one specific asset while keeping the tax lien itself in place to cover all remaining and future assets. If you are going to make any money from the sale of your home, expect to hand it over to the IRS as payment toward the taxes.
If you would like to refinance your home and have an IRS tax lien in place, you'll need to request a Subordination of the IRS lien. Learn more about the Subordination here. Of course the IRS will expect you to resolve your debt prior to granting a Subordination. That is, unless your refinance will full pay your tax debt. Either way, the IRS will expect to be paid any funds you may receive from the refinance to be applied toward the balance due.
If you have questions about the IRS Certificate of Discharge, Subordination or other tax lien solutions, call 866-937-5079 to speak with a Fresh Start Tax Expert today. No pressure. No high fees. Clear cut, honest advice.