Posted on: 26th Nov, 2008 08:24 pm
My friend has a property close to foreclosing, I would like to buy the property but he has a $10,000 IRS lien on the property, how does this affect my purchase, would it be my responsibility or his, or would the lien fall off?
Thanks
Thanks
Hi balmaha,
You should ask your friend to pay off the IRS tax lien before you purchase the property. If you purchase the property, there are chances that you will have to pay the tax lien. The lien will not fall off in any way.
Your friend should understand that an IRS tax lien will badly affect his credit score. He should contact the IRS and immediately pay it off. If he is not capable to pay it in full right now, he can try out the payment plan that the IRS offers. It is one of the best ways to pay off the lien. Once the IRS agrees upon a payment plan, he should pay off the debts according to the plan and never defaults on it. The payment plan will be canceled if he defaults. If he is incapable of paying the whole amount, he can negotiate with the IRS and check if they compromise on the amount.
Thanks
You should ask your friend to pay off the IRS tax lien before you purchase the property. If you purchase the property, there are chances that you will have to pay the tax lien. The lien will not fall off in any way.
Your friend should understand that an IRS tax lien will badly affect his credit score. He should contact the IRS and immediately pay it off. If he is not capable to pay it in full right now, he can try out the payment plan that the IRS offers. It is one of the best ways to pay off the lien. Once the IRS agrees upon a payment plan, he should pay off the debts according to the plan and never defaults on it. The payment plan will be canceled if he defaults. If he is incapable of paying the whole amount, he can negotiate with the IRS and check if they compromise on the amount.
Thanks
Thanks for the advice my friend, yeah the payment plan sounds like the way to go for him, although does that mean as long as it takes him to pay off, it will still be considered a lien on my property .or will it be removed once he comes to an agreement with the IRS
Hi balmaha!
Welcome to forums!
As far as I know, the lien has to be paid in full according to the payment plan then only the lien will be removed. Once your friend pays in full, he can ask the IRS to update his lien status in the credit bureau or he himself can inform the credit bureau about this. The credit bureau will update his lien status as "paid in full".
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
As far as I know, the lien has to be paid in full according to the payment plan then only the lien will be removed. Once your friend pays in full, he can ask the IRS to update his lien status in the credit bureau or he himself can inform the credit bureau about this. The credit bureau will update his lien status as "paid in full".
Feel free to ask if you have further queries.
Sussane
Thank you both for the advice, I appreciate it.
Steve
Steve