Home Buying in 95382>Question Details

Diane, Home Buyer in Turlock, CA

how long does it take to get government lien released?

Asked by Diane, Turlock, CA Mon Sep 26, 2011

We are purchasing a short sale and the home has a government tax lien on it. How long will it take to get this lien released?

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Hi Diane,
I dealt with a short sale previously that had an IRS tax lien on it. It was a very involved process and took the IRS 60 days to process. Smaller government entities, provided that the debt has been cleared, have taken 30 days. But, one thing the IRS rep made crystal clear was that the time frames they give you up front are only estimates, and if they get a huge influx of requests, that could cause delays longer than the time frames specified.

Valia Rasuli, Broker Associate, PMZ Real Estate
C: 209.485.8302 | D: 209.548.4524 | F: 209.527.6146
vrasuli@pmz.com | vrasuli.pmz.com | facebook.com/ValiaRasuliBroker
0 votes Thank Flag Link Thu Nov 21, 2013
The lien doesn't go away until you pay it, if you pay it, the buyer will never get a clean title, as Realtor I would advise any buyer I were working with to withdraw the offer if the lien was not removed before time of sale. The Government does not care that the person who caused the lien is no longer the owner of the property that the government attached itself to, the property will pay the lien and the person responsible will be the present owner. Caution here, saying okay so the is a lien on the home, but price is great and the lien can sit there like it did before I purchased the home. The Government at anytime can demand payment plus interest that has now accrued over the years, they can with a stroke a pen put you home up for auction to pay for these owed monies. Add injury to insult, if the property does not sell for enough to cover the owed amount and fees, and interest, then the government can go after you for the difference and put liens on other properties you own including personal items like car and other properties. Do not buy the property unless the liens are removed and the seller gicves you a clean title and title insurance. make sure you CYA.
0 votes Thank Flag Link Mon Sep 26, 2011
I was involved in a similar short sale option while working with a seller. As I represented the seller, it took a couple phone calls to negotiate the lien down by 85%, and to get the results in writing from the lien holder. However, this was 2 years ago and I am of the opinion that it may take much, much longer in today's abundance of short sale option deals. Good luck!
0 votes Thank Flag Link Mon Sep 26, 2011
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