You are in trouble (big time). The issue is as follows: All tax authorities (IRS, State, County - property taxes) are automatically in 1st place - ahead of your lender if the owner defaults on paying taxes. Lenders need to be in 1st place, so before they give you a loan to buy a home, they need proof that you (the buyer) does NOT owe taxes to anybody. Lenders can refuse to fund your loan if you owe the IRS money. Briefly, the IRS can legally foreclose on your home (take your home away from you and evict you) and sell it for full value. This means your lender has a worthless mortgage loan because the IRS has possession of the house - not the lender. The IRS is just interested in collecting what they are owed - they don't care one bit what is owed to the lender. Therefore, the lender can try to collect from you even if you lost the home - that will be a legal challenge. So to prevent this risk, lenders don't give loans to buyers who owe money to the IRS.