IRS Speeds Lien Relief for Homeowners Trying to Refinance, Sell

Steven Feldman — Mon, 27 Apr 2009 21:05:39 +0000

The IRS announced that it is putting a rush on processing Tax Liens on homes where the owner needs to refinance the mortgage or the sale the home due to the recent economic climate here in the U.S.
In order to aid short sales or loan modifications, Taxpayers or the lenders may request that the IRS make a tax lien secondary to the lien held by the lending institution that is refinancing or restructuring a loan. Taxpayers for the lenders may ask the IRS to accept less then is actually owed to the IRS.

The process to request a discharge or a subordination of a tax lien usually takes about 30 days after the IRS receives the application. The IRS says it will work to speed up those request because “they” don’t want to be the reason people lose their homes.
For the source on this announcement visit the irs.gov site and search for: IR-2008-141, Dec. 16, 2008.

Taxpayers or their representatives may apply for a certificate of discharge of a tax lien if they are giving up ownership of the property, such as selling the property, at an amount less than the mortgage lien if the mortgage lien is senior to the tax lien. The IRS may also issue a certificate of discharge in other circumstances if the taxpayer has sufficient equity in other assets, can substitute other assets, or is able to pay the IRS its equity in the property. Without a tax lien discharge, the taxpayer may be unable to complete the home ownership change.

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IRS Speeds Lien Relief for Homeowners Trying to Refinance, Sell