Tax Lien Relief for San Diego Homeowners
In the past when a home had a federal tax lien on it, the lien would have to be paid in full in order to refinance or sell. With the economy in distress, the IRS is now being a bit more forgiving when it comes to tax liens as well as working to decrease the processing time. Doug Shulman, the IRS commissioner, was quoted saying, “We don’t want to be a barrier to people saving or selling their homes.”
There are two options for a San Diego homeowner with a tax lien who wants to refinance or sell: subordination and discharge. The first of the two, subordination, is an option for homeowners who are hoping to refinance or modifying their existing loan. How it works is the IRS allows the tax lien to take secondary precedence over the existing mortgage on the home.
The discharge option is intended for homeowners who are having to “short sale” their home. In other words, the homeowner is selling their home for less than they owe the bank; hence, there will be no extra funds from the sale of the home to pay off the IRS. The IRS then agrees to discharge the amount owed, provided the homeowner doesn’t have other assets of equity.
The IRS understands the importance of homeowners being able to use these options in order to save or sell their home. They are working hard to expedite the normally 30 day long process as well in hopes to keep the ball rolling for those homeowners in distress. To find out more about the process of subordination and discharge view the full details on the IRS website.
» Posted by Peter
