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Short Sale FTB Lien

¬†Many times when facilitating short sales there will be multiple liens on title whether it’s a mortgage, judgement, or a tax lien. In California when there are challenges with paying state tax, the state will lien a debtors property. Dealing with the state is more difficult than dealing with the IRS from our experience. The IRS allows partial lien releases on short sales for $0 or from a fair equitable standpoint¬† based on their lien position. The Franchise Tax Board is much more difficult often requesting to be paid in full even if they have a $0 equitable posistiion. Lately they have been denying partial lien releases and demanding to be paid in full. This makes some short sales extremely difficult as there is not always enough money to satisify all lien holders.

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