Franchise Tax Board Lien

If you pick up a short sale listing with a Franchise Tax Board (FTB) Lien on title it is a red flag, but don’t worry too much as these liens can often be resolved without too much complication. FTB liens are handled similarly to IRS liens, but with less hurdles. You will need to first be approved by all lien holders prior to the FTB reviewing a partial lien release. The following documents will be required for their review and must be mailed directly to them.

1.Letter from seller(s) detailing request and/or hardship. Must include FTB ID/SSN, property address, forwarding address (if applicable), phone number(s), and current occupation.
2.Estimated Closing or Settlement Statement. (HUD-1). Include estimated closing date.
3.Current preliminary title report that includes the legal description of the property.
4.Current appraisal report. (CMA/BPO accepted on vacant land transactions only)
5.Copies of all other liens and encumbrances.
6.Documentation to substantiate all lien payoffs through this escrow. Current short sale approval letter from lender(s) required for all Short Sale transactions.

Additional documentation and contact with the seller may be needed to complete the request. While the FTB lien is being reviewed for release your allotted time to close with the mortgage lien holders will be dwindling, so ensure all of your ducks are in a row for a smooth closing.

For assistance with short sales or in working with any type of lien on title, please fill out the form below.

[contact-form-7 id=”155″ title=”Contact form 1″]