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#3
09-03-2003, 06:23 AM
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 Re: Refinancing with tax lien. - quote - > > > How can I refinance a home if it has an IRS lien on it?
In the last 25 years, I've seen loans made under these> > > > > The home that needs refinancing has an IRS lien for around > > > $30,000. There's nearly $100,000. equity in the house...but > > > the lien blocks the loan. The idea is to get a new loan on > > > the property, thereby enabling us to arrange to settle the > > > lien, and then get a lower interst rate on the mortgage. > > > > > I would appreciate any advice. > > Talk to your mortgage broker/loan officer. It should not be > > a problem to get a loan if in the process you pay off the > > lienholder. That happens in nearly all home sales and > > refinances, since the current mortgage holder will have a > > lien against the property. > I not sure it's as easy as you all make it sound. Would'nt > one first have to get the lien subordinated,then approach > the bank.. Not the other way around? Some have implied here > that you can basically let the bank handle it, and the IRS > will comply. Just as long as they get paid off. > So realistically.... > 1. You go the IRS for lien subordinatiion. > 2. You wait 3 mos. for them to approve. > 3. After lien is removed you then go to the bank. > I have a client who is in the same situation. Their loan > company won't give them the loan until the lien is removed > or subordinated. Are there specific financing companies or > banks that are good for this situation? (Especially if bad > credit is involved). circumstances numerous times. I've never heard of a lender making difficulties, as long as the taxpayer could meet the lender's underwriting requirements. It was not necessary to get a subordination from IRS, the escrow instructions included a requirement for the escrow agent to use the proceeds to pay them, As long as the tax liability gets paid, the lien gets released and the lender has a valid claim against the property. This works just like the release of a previous mortgage that is being refinanced and should not cause anyone any headaches. Of course, this depends on the credit of the taxpayer and the equity in the property being adequate to support the new loan! << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
08-30-2003, 06:19 AM
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| Re: Refinancing with tax lien. "Bestfriend" <a1[at]usa.com> wrote: - quote - > How can I refinance a home if it has an IRS lien on it?
This is not that big deal at all. You simply> The home that needs refinancing has an IRS lien for around > $30,000. There's nearly $100,000. equity in the house...but > the lien blocks the loan. The idea is to get a new loan on > the property, thereby enabling us to arrange to settle the > lien, and then get a lower interst rate on the mortgage. > I would appreciate any advice. payoff the tax lien with the refinance. The bank's attorney will contact the IRS and request a lien payoff and the lien gets paid as part of the refi. Assuming you are willing to pay it in full, this is a non-issue. Charles Markham, EA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
08-30-2003, 06:00 AM
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| Re: Refinancing with tax lien. "Bestfriend" <a1[at]usa.com> wrote: - quote - > How can I refinance a home if it has an IRS lien on it?
Talk with the IRS about them getting the loan proceeds.> The home that needs refinancing has an IRS lien for around > $30,000. There's nearly $100,000. equity in the house...but > the lien blocks the loan. The idea is to get a new loan on > the property, thereby enabling us to arrange to settle the > lien, and then get a lower interst rate on the mortgage. They don't know what you're doing, hence they cannot lift the lien to help you settle the issue. -- David M. Woods, EA Boston, MA 02109 Postings here are general information only and not to be relied upon as advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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08-30-2003, 05:59 AM
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| Re: Refinancing with tax lien. a1[at]usa.com (Bestfriend) writes: - quote - > How can I refinance a home if it has an IRS lien on it?
If the lien will be paid in full from the refi it will bereleased as part of the settlement process. If you propose to only partially satisfy the lien through the refi you'll need a subordination from the IRS. See Publication 784. Phil Marti Topeka, KS << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
08-29-2003, 05:41 AM
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| Refinancing with tax lien. How can I refinance a home if it has an IRS lien on it? The home that needs refinancing has an IRS lien for around $30,000. There's nearly $100,000. equity in the house...but the lien blocks the loan. The idea is to get a new loan on the property, thereby enabling us to arrange to settle the lien, and then get a lower interst rate on the mortgage. I would appreciate any advice. Liz << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| lien, refinancing, tax |
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