Contacting the IRS and setting up a re-payment plan is your first step. The IRS may agree to a subordination of an IRS tax lien that is in a repaymetn plan if the borrower uses FHA financing. I had one a couple of weeks ago where the borrowers contacted the IRS and were told that they would not agree to a subordination.
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You sound pretty steamed about this. You also did not say whether this is a legitimate debt or a case of mistaken identity. Assuming it is your debt, and even if it is not, unless you want a lengthy fight, contact the IRS and deal with this head on. Get your fact and documentation in order, be calm, polite, and pick up the phone.
And remember that thing our mothers used to say about a spoon full of sugar, or honey, or whatever it was, it goes triple for government officials. Who ever you get at the IRS, they did not cause your problem, but they can sure make it worse. Go in with the right attitude, and they might just help you solve your poblem.
Best Atlanta Properties
After you get it resolved is the time to go out looking at homes. The IRS lien will never follow up so get it taken care of so you can acutally move on! Good luck!
In terms of IRS subordination, that is not required per the IRS web site. The specific excerpt is included below as is a direct link to the IRS source.
Here is the excerpt:
Is it necessary for the Internal Revenue Service to issue
a certificate of subordination giving the security interest
priority over the NFTL?
It is not necessary for the Internal Revenue Service
to issue a certificate of subordination in order for the
lenderâ€™s PMM or PMSI to have priority over the lien.
The direct link to this document on the IRS website is:
Thank you for the opportunity,
Sr. Mortgage Loan Officer
Silverton Mortgage Specialist
did you know that IRS leins average 25% interest a year?
They can't be written off with a Bankruptcy.
Can enforce Wage Garnishment and even prison.
even those who go to jail are not forgiven the debt.
The IRS is no one to mess with. unless you can prove it in court, your best bet is to start paying it asap. dedicate any tax refunds, bonuses, ect... to paying it off asap.
Again 25% interest.
10k = 12,500 by the end of the year
You will most likely not be able to secure a mortgage loan with an IRS lien.
Best of Luck to you
Kawain Payne, Realtor
RE/MAX Greater Atlanta
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Work on getting your lien down and set up a payment plan to pay it off. Also, work on saving some money for your down payment while you wait for your lien to be paid off.
Solid Source Realty