Home Going To Sheriff Sale And Has $50K+ IRS Tax Lien!
Hi, I need advice and quick. My friend's home is going to Sheriff Sale in less than 3 weeks. There is only one mortgage on the property however, there is an IRS tax lien of over $50K. Can she sell with this tax lien and at the same time negotiate with the lender for a possible short sale? Any advice will be helpful. Please give details. :-(
Lynn001--(LA)--------------------
My opinion is that this person needs to consult with an attorney in the area who is familiar with bankruptcy, foreclosures, and IRS liens.
Then too, her income situation is important. If she has gotten where she is because of a temporary financial situation and now has good income, she might be able to work with the lender and save the house from the foreclosure sale. If she still has no income, this is less likely. However, if there is a right of redemption after the auction, she might also be able to work something out after the sale.
This is far too complicated to guess what might happer and answer your question. You don't mention the market value of the property, you don't mention what sort of response she has had when she has negotiated with the IRS. What their attitude is.
Good Investing************Ron Starr*************
Mr. Starr, I'm sorry I did not give enough details. The house appraised for $350,000 but the lender is suiting for $400,000. I'm assuming this includes foreclosure fees, atty. fees, etc. The house would probably only sale for maybe $250,000 - $300,00 being it is vacant and needs a few repairs. (Home is apprx. 5 yrs. old). The tax lien is closer to $75,000. We have a few weeks prior to Sheriff Sale and was just wondering if a short sale was even possibly feasible being such short notice and the IRS lien. Thanks for the info.
Lynn001-------------------
Well, it sounds like she has no equity in the property. And she does not live there.
I assume that the IRS lien is junior to the lender's possition. I am not very hopeful here.
About all I can think to do is to talk to the revenue officer, with the owner's permission, to see what the IRS might be willing to do here. Then talk to the lender and ask if there is any possibility of working something out.
But, assuming that the lender would sanction a short sale, who is going to do the buying? You? If so, do you have the money/credit to buy it?
If you aren't the buyer, who is? I would guess that the lender wants to see a solid pu rchse offer in hand, not a mystical mythical hypothetical deal.
Good Investing**********Ron Starr*************
I do have the money/credit to buy it however, I am not buying it. I do not want to invest right now. I do however, have a pre-approved buyer ready and willing to pay up to $400,000. However, I know their lender will only approve for up to the appraised amount $350,000. I will give it a shot with the lender for a short sale and try to communicate with IRS re: Offer & Compromise or other. Thanks for responding.