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Short Sale: Removing an IRS Tax Lien from a property

Reblogger
Real Estate Broker/Owner with Charles Stallions Real Estate Services 610125

Pensacola, Florida: I am continuing my best best of the best series by choosing articles on different subjects and this weeks subject is on Foreclosures and Short Sales. I hope you find this series to be educational as well as informative. Call me to discuss your options whether buying or interested in selling on the short side I can help. Charles Stallions 800-309-3414 or E-mail charles@charlesstallions.com or to view short sales and foreclosures in  Pensacola, Pace or Gulf Breeze, Florida Click Here.

Original content by Knolly Williams AUTHOR & NATIONAL SPEAKER

If you have a short sale property with an IRS tax lien, the IRS will remove thier lien and allow you to sell the home. It takes WORK but it can be done!

In cases where the homeowner has not paid their income taxes, the IRS may place a federal tax lien on the property. Actually, the lien covers all of the person's property including the home. Typically, you can convince the IRS to remove the tax lien (from the house) by requesting a Certificate of Discharge of Property from Federal Tax Lien (Publication 783) with the IRS.

The reason the IRS has placed the lien on the person's home is so that they will get paid whenever the person sells their property. If you can convince the IRS that the homeowner is upside down and that there will be no resulting proceeds from the sale, the IRS may agree to release their lien. Along with your request, you will need to include some supporting documentation such as the purchase contract, the payoff statement from the bank, and so forth.

I have had to deal with IRS tax liens on several occasions, and they are not fun. However, there is no way to move the short sale transaction forward until the IRS tax lien has been removed.

This entire process should be coordinated in conjunction with your title company or attorney. Make certain that you are working with a title agent who knows the ins-and-outs of the partial release of lien process. For more information and complete instructions, go to www.irs.gov and search for "Publication 783."

Happy Short Selling!

Comments (3)

Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing

What a great series.  Thanks for sharing this invaluable information. 

Oct 10, 2009 11:34 AM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

Well thanks Kate and I am enjoying it as well.

Nov 01, 2009 09:50 AM
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

Are you paying too much in Property Management Fees? Are you going broke with maintenance fees, low rents, lack of tenants etc? We charge a Flat Fee of $50. a month which includes monthly reconciliation statement, tenant screening, property inspections, we do low cost preventive maintenance saving owners thousands. We save owners 75% over other property managers. Bottom Line is WE make you MONEY. Call Michelle - 800-309-3414 - Charles Stallions Real Estate Services Inc.

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Jul 30, 2012 05:44 PM