The Internal Revenue Service has instituted a new policy to make it faster for a home owner to remove a lien against their property. With the current economy forcing many homeowners to sell or refinance, a tax lien can delay the process, adding to that property owner's pressure, even blocking a sale or refinance. In the past it has taken 30 days to process a lien removal request which is unacceptable in these difficult times. Doug Shulman, IRS Commission, said, "We don't want the IRS to be a barrier to people saving or selling their homes. We want to raise awareness of these liens options and to speed our decision-making process so people can refinance their mortgages or sell their homes."

An IRS tax lien can be filed by the Internal Revenue Service when a taxpayer fails to pay all they owe. A lien can be filed against that individual's personal property, including any real estate owned, to recover the amount due. In a typical year, the IRS files more than 600,000 liens, effectively letting other creditors know about their claim. Before any property can be sold or refinanced, that lien must be removed or moved into a secondary position, know as subordination.

If you're one of those taxpayers who has a lien on a home you now want to sell, you must remove the lien so the title can be transferred to the new owner. This can be done by paying off the lien or, under certain circumstances, by having the IRS discharge the debt. A discharge releases the home so it can be sold or refinanced but doesn't release you from the debt. If you're buying another property, the IRS may place a lien against that home or against other personal property you own.

Lien discharges are becoming more common as housing values tumble. The National Association of Realtors (NAR) reported the median home price in November was down 13.2% from a year ago. Director of Federal Tax Programs for NAR, Linda Goold, applauds the effort by the IRS to help with tax liens. "Anything that clears any impediment to a transaction is a boon," she said. "We view that as a great positive."

What Can Orlando Homeowners Do About Tax Liens?
What can you do if you're refinancing or restructuring your loan? You or your lender can ask the IRS Collection Advisory Group to place the tax lien in a secondary or subordinate position. This option is readily available from the IRS though few taxpayers know it exists. Publication 784, "How to Prepare an Application for a Certificate of Subordination of A Federal Tax Lien," explains the letter and documentation you need to send to the IRS.

What can you do if you're selling your home? If the sales price is less than the mortgage amount owed the lender, you can send an application to the IRS to request they discharge the debt and release the home. Find instructions for requesting the discharge in Publication 783, "How to Apply for a Certificate of Discharge of A Federal Tax Lien."

The IRS advises homeowners to notify their lenders early so they are aware of the existing tax lien. The Collection Advisory Group should also be contacted promptly so they can begin work on the homeowner's tax lien request and reduce delays. You can find Collection Advisory Group addresses in Publication 4235.

Check out the tax lien announcement on the IRS website for links to all three publications.

Seaching for a great real estate value in Central Florida? Need help with a short sale?
Call or email me TODAY to go over your options!!!!!!

"It's only a buyer's market if you're ABLE to buy!"

Looking for specific information regarding Orlando Florida real estate prices and communities? Get Your Free Market Snapshot

Read Also: Orlando Florida Relocation Resource Guide

Read Also: Business 2.0 Magazine has named Orlando the number 1 hottest market with America's best jobs.

Read Also: Orlando Florida Facts & Resources

Read Also: Orlando Florida City - Everything You Need To Know!

If you are wanting to sell your Seminole County or Orlando area home in the next 6 to12 months, now is the time to begin putting your plan into place while time is still on your side. Please contact us for any real estate assistance you may need.

We're experts at putting people together with homes they love and can afford. Contact us today for information on Orlando and Seminole County real estate, Orlando & Seminole County homes for sale, Orlando & Seminole County relocation information, a free market analysis of your Orlando area or Seminole County home or statistics on homes in Orlando & Seminole County Florida or the surrounding Central Florida area, including Seminole County, Orange County, Lake County and Volusia County. We're always available to answer your questions.

On December 16, the Federal Reserve Bank announced an interest rate cut to a range of .25 percent to 0 percent. This remarkable adjustment means the prime rate will drop to 3.25 percent. The Fed made this move to encourage banks to loosen their tight grip on money and stimulate the economy by providing loan funds for homes, cars, business financing, and personal credit accounts. This is welcome news to home buyers and sellers in the Orlando, Florida, area. Conversely, by reducing the rate paid for savings accounts and certificates of deposit, the Fed hopes business and consumers will borrow more and spend more, pumping money back into the struggling economy.

The lack of confidence in the current economy has resulted in banks clamping down on the flow of money. In his article for U.S. News & World Report, Luke Mullins quoted the Fed's Open-Market Committee, as saying, "Financial markets remain quite strained and credit conditions tight." This is evidenced by the decline in business investments, industry production and consumer spending. Ben Bernanke, Chairman of the Federal Reserve System, led the Fed's Open-Market Committee to this latest rate cut through his philosophy of throwing everything, including the kitchen sink, at the current recession to support a turnaround by keeping the rates low for a long time, at least until growth returns and appears to be on a stabilized upward trend.

For businesses using credit to pay bills and make payroll, an influx of money and a reduced interest rate could make the difference between staying open or closing their doors. Personal credit card holders whose interest rate is based on the prime rate may see a reduction in their monthly finance charges which could help their strained budgets. Likewise borrowers with Home Equity Lines of Credit (HELOCs) using prime as a benchmark may also experience some relief, although some of those borrowers have a cap on their minimum rate and may already be making the lowest payment permitted by the terms of their mortgage contract.

How does a cut by the Fed benefit home buyers in the Orlando area?
Surprisingly, there will be little effect immediately on 30-year fixed rate mortgages as those rates had been dropping steadily, and home loan rates are influenced by factors other than the prime rate. What may be more important is the "kitchen-sink" attitude of Ben Bernanke and his determination to solve the "crisis of confidence." According to Bankrate.com, under Bernanke's leadership, the Federal Reserve plans to print more money--billions of dollars worth--to buy up mortgage-backed securities. Along with committing to keep rates low for an extended time, the Fed is considering purchasing Treasury bonds and notes; accepting corporate bonds, mortgages and commercial paper as collateral for bank loans; and buying corporate bonds. The goal is to boost confidence during these trying times, by supplying ample capital to banks so they open the gates and lend to other banks, consumers and businesses. A flood of money into the market, coupled with reduced rates for business loans and credit cards, could reassure consumers who are concerned about job cuts and budget woes. Any reduction in the perception of a worsening economy may spark potential home buyers to take action now while real estate prices in the Orlando area make it one of the top ten bargain markets (as rated by Forbes.com), and mortgage rates are at their lowest level in years.

Seaching for a great real estate value in Central Florida? Need help with a short sale?
Call or email me TODAY to go over your options!!!!!!

"It's only a buyer's market if you're ABLE to buy!"

Looking for specific information regarding Orlando Florida real estate prices and communities? Get Your Free Market Snapshot

Read Also: Orlando Florida Relocation Resource Guide

Read Also: Business 2.0 Magazine has named Orlando the number 1 hottest market with America's best jobs.

Read Also: Orlando Florida Facts & Resources

Read Also: Orlando Florida City - Everything You Need To Know!

If you are wanting to sell your Seminole County or Orlando area home in the next 6 to12 months, now is the time to begin putting your plan into place while time is still on your side. Please contact us for any real estate assistance you may need.

We're experts at putting people together with homes they love and can afford. Contact us today for information on Orlando and Seminole County real estate, Orlando & Seminole County homes for sale, Orlando & Seminole County relocation information, a free market analysis of your Orlando area or Seminole County home or statistics on homes in Orlando & Seminole County Florida or the surrounding Central Florida area, including Seminole County, Orange County, Lake County and Volusia County. We're always available to answer your questions.