Home Buying in Orange>Question Details

Christina, Home Buyer in Orange, NJ

If I'm purchasing a property that has federal tax liens can I issue a subordination to the IRS so that the contract can go through?

Asked by Christina, Orange, NJ Wed May 16, 2012

I have been under contract on a short sale since October 2011. Two months ago our attorney brought to our attention that a title search showed that there were federal liens owed on the house. The attorney made an addendum to our contract requesting that the seller pay the liens within 2 months for a possible close date at the end of May. The seller has not paid the liens, and has not made any efforts to do so. Is it possible for me to issue a subordination of liens so that the contract can go? Can I just pay the liens myself, and if so, how would I go about paying them?

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The federal tax liens are from the seller. Your attorney is correct to ask the seller to pay them. It can be done at closing. A lender is going to request the payoff letter in advance.
0 votes Thank Flag Link Wed May 16, 2012
You can’t subordinate them, that is something the IRS would need to do, you can pay them at the closing, just have the closing attorney get a pay off from the IRS and let the closing attorney pay them so your title insurance covers it. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Wed May 16, 2012
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