Posted on: 07th Feb, 2010 02:32 pm
my husband & i would like to refinance our existing 11.25% rate mortgage (mortgage balance is @ $110,000. on original loan amount of $114,000) for a lower rate (and payment), however we have an irs tax lien of @ $8500. on the property. we have an installment plan in place and have been making our payments promptly for over 18 months. should we request a subordination of lien before we try for a refinance or wait until we see if we are approved for a refinance.
thank you for your assistance.
eileen miller
plano, tx
"egmiller@email.com"
[size=9:a6727b7dec][color=red:a6727b7dec][email address deactivated as per forum rules][/color:a6727b7dec][/size:a6727b7dec]
thank you for your assistance.
eileen miller
plano, tx
"egmiller@email.com"
[size=9:a6727b7dec][color=red:a6727b7dec][email address deactivated as per forum rules][/color:a6727b7dec][/size:a6727b7dec]
Hi egmiller,
You can request the IRS to subordinate your lien. The tax lien is a first priority lien and needs to be paid first. So, IRS has the right to sell your property to satisfy the lien. Generally, no lender would want to allow you to refinance unless the tax issues are resolved. If you request IRS to subordinate the tax lien, the lender will hold first lien and will be paid first when the property is sold. You can apply for the refinance and see if you can qualify even with the tax lien. In case the lender has any problem with the lien, ask IRS to subordinate it.
You can request the IRS to subordinate your lien. The tax lien is a first priority lien and needs to be paid first. So, IRS has the right to sell your property to satisfy the lien. Generally, no lender would want to allow you to refinance unless the tax issues are resolved. If you request IRS to subordinate the tax lien, the lender will hold first lien and will be paid first when the property is sold. You can apply for the refinance and see if you can qualify even with the tax lien. In case the lender has any problem with the lien, ask IRS to subordinate it.