IRS Lien Short Sale

When processing short sales you may run into an IRS lien on title. You should try to get authorized with the IRS right away. The IRS authorization Form 2848 is required for the IRS to speak to you. It’s very important to know that the Internal Revenue Liens must be addressed post approvals being received from all lien holders. In order for the IRS to review a potential discharge of the lien they will require documentation such as all lien holder approvals,  a Purchase Agreement and an Est. HUD-1. An appraisal will also be required by the IRS along with a Application for Certificate of Discharge of Property from Federal Tax Lien. Timing is everything as all needed items should be mailed to the IRS as soon as all other lien holder approvals are received. More often than not we have been able to get IRS liens discharged to allow a short sale to go through with no pay off required. Be aware that IRS liens may lead to a transaction falling apart if the individual processing the short sale is not experienced in this matter.

To better understand what a federal tax lien is click here.

For assistance in a short sale or settling and having an IRS lien released from your property please fill out the form below.

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