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

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?

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

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.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Ryden

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

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.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

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.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Jessica's picture
Jessica | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

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 .

Regards,

Jessica.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,
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.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi

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.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

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