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Can i refinance my home which is filed for Federal tax lien?

Posted on: 01st Sep, 2006 08:43 am
Can I refinance my home even though the IRS filed a Notice of Federal Tax Lien for taxes due and owing by my company. The Notice of tax Lien references the Federal Employee Identification Number and not my own social security, although the Notice contains both the name of the company and my name?

There is an option called Lien Subordination, where if IRS receives its full proceeds from the refinance of the property then lien subordination is granted.

By this method the IRS grants the refinancing lender have the priority interest ahead of itself.

Posted on: 01st Sep, 2006 03:30 pm
I would like to add that the reference to your federal employee identification number does not have any different meaning to what it would mean if the social security number is used.

As your company is involved that is why the employee number has been given.

Posted on: 01st Sep, 2006 04:03 pm

No Ryden, the actual reason the EIN is listed instead of the SSN is because of the problem of identity theft and privacy problems involved with listing of the SSN on publicly available documents.

The IRS decided to remove the SSN from such notices after legislation for removal of SSN from public documents was introduced in 2004 in the House of Representatives.

Posted on: 01st Sep, 2006 04:36 pm

IRS gets a secured interest because of the Federal Tax Lien on the property.

And many lenders might not agree to refinance until and unless they would be able to get a security interest more than the lien placed by IRS.

So refinance is possible by way of subordination but you will have to shop around for any lender who will agree to refinance.
Posted on: 01st Sep, 2006 05:00 pm

You can request for a Subordination of Lien from the IRS. The Subordination will not remove the Federal Tax Lien from the property. But it will lower the priority if any other lien against the same.

The lien, however, remains, though it holds back the sale of the property and any other property owned by the taxpayer. This Subordination will help you to take a refinance loan and repay it in time after which you need to pay the taxes due.

In case you are interested to refinance, visit our section on this topic for some idea on how the process works .


Posted on: 01st Sep, 2006 10:10 pm
I have tried to deal with the irs lein subordination, payments missed one payment and got a lein on my house, my mortgage went up now I am giong to ask for a hard ship to my mortgage company and tell them why I need to get assistance. to lower my payments for a short time. will I be able to do that with the lein . I can not pay off the taxes, because of the lein. I can not get a loan to do that. I already tried the payments I am on non payable status for my taxes.
Posted on: 30th Dec, 2008 02:55 pm
Hi jeanne,

As far as I know, if you are looking for a loan modification with your lender, there are chances that you will be rejected. The lender may ask you to pay off the lien first. If you are looking for a forbearance, then the lender may agree to it.

Posted on: 30th Dec, 2008 11:55 pm
My ex husband and I still own a home together which has a tax lien from his business. I need to refinance to get him off the property. Will the lien keep me from doing this? Can I request a tax lien subornation?

Thank You.
Posted on: 25th Apr, 2009 10:12 am

The lien can be a barrier while refinancing. That's why you ought to request for a subordination of lien from the IRS which they generally agree to. Once the lien's been subordinated, you can refinance the loan.
Posted on: 27th Apr, 2009 07:35 am
I lost my job and needed to get a loan modification. During the underwriting phase, I was told there was a state tax lien on my home. I can't pay off the lien, is there any other way around this to save my home?
Posted on: 10th May, 2012 06:39 am
Hi Jessy,

Unless you pay off the lien, it will be difficult for you to save your home and get a loan modification. You need to contact the state tax department, and check out if you can get a payment plan to pay off the lien.
Posted on: 10th May, 2012 11:44 pm
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