I have a fed tax lien on the only property I own. I’m heading into a short sale. So what happens to my lien?
I am selling my home in a short sale because I can no longer afford it and if it doesnt sell then I will be foreclosed on.
I dont have the cash to pay off the tax lien nor do I have another piece of real estate to move the lien to….so now what?
The house is not going to be able to be sold at all without paying the lien.
If the house is foreclosed on they will procede to garnish your wages, seize accounts, etc until you pay us back for the money you illegally kept.
8 Responses to “I have a fed tax lien on the only property I own. I’m heading into a short sale. So what happens to my lien?”
It will follow the property and will probably result in you being unable to sell your property while the lien is attached to it. Once the buyers find out about it, they will likely back out of the deal…….or at least ANY smart person would. Tax liens on properties are the WORST things to be attached to a property!
Comment made on January 7th, 2010 at 2:43 amReferences :
You won’t be able to sell without clearing the lien. As soon as a potential buyer does the title search, that lien will pop up.
Comment made on January 7th, 2010 at 3:26 amReferences :
You will have to pay off the lien before clean title can be passed to the buyer. Federal tax liens get priority treatment even over the mortgage. So, either find a way to pay this off, or see if you can get a personal loan to pay it off, or inform the realtor handling the sale to prepare for this complication.
Comment made on January 7th, 2010 at 4:01 amReferences :
uh…it’s Federal. THey will have to be paid off by SOMEONE for this property to transfer.
Period.
Federal liens superceede pretty much EVERYTHING.
uh…unless you can convince the lender to take less or the buyer to cover the lien or you pay it, there will be no sale.
Comment made on January 7th, 2010 at 4:22 amNo one is going to take title to a home when the Fed’s have a first lien position to foreclose.
References :
Title agent
the lien will have to get paid off at the closing. the closing will not occur until all liens and mortgages are paid off.
Comment made on January 7th, 2010 at 4:44 amReferences :
The way it was explained to me in my real estate classes was this way:
king-Uncle Sam
The Bank or mortgage holder
U
Me
In that order. Do pay it off as quickly as possible otherwise you could loose the deal or the purchaser may request that the title be cleared up asap. Either way your house won’t close until Uncle Sam gets his money that’s owed to him. If I were the purchaser I would say, ‘stop the presses and forget about it’. Unless it’s a tax sale and the purchaser already knows about it.
The information that is not being given to the answer community is whether you are being forced to sell the property due to the tax lein. If that is the case, the lien will get paid off first and everyone else after that when the sale is complete. Uncle Sam always gets paid first in any tax lien.
Comment made on January 7th, 2010 at 5:27 amReferences :
real estate appraiser
The house is not going to be able to be sold at all without paying the lien.
If the house is foreclosed on they will procede to garnish your wages, seize accounts, etc until you pay us back for the money you illegally kept.
Comment made on January 7th, 2010 at 6:07 amReferences :
This is the fed, if the lein is not taken care of the home will not have clear title and will not sell, the other option is the Fed comes after you direct and garnishes your wages or anything else they can. Fed plays by different rules and they always get their money
Comment made on January 7th, 2010 at 6:29 amReferences :
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