What do you do with an IRS lien and a property tax lien? Countrywide will not accept my short sale with those liens “deducted out” - they won’t pay the liens, which makes sense. But I don’t know how to help the seller, now. He doesn’t have any money at all to pay off those liens to clear the title.
How do you handle liens in a short sale?
I have not had to deal with this, so I will state what I know but please verify it.
Property tax will need to be paid off. There is no escape from it. The IRS lean could be removed off the property once you own it, but it will take around 120 days to do so. You will have to talk to the IRS about it. IRS and property tax, as far as I know, will survive the foreclosure. I am not sure what the lender’s options are once they foreclose.
I’ve heard of people being able to negotiate with the IRS.
May be you need to consult an accountant or tax attorney about your case.
The IRS will negotiate a settlement part cash part payment, or in some cases, even a percentage, we have been able to do that before, just depends on your clients circumstances and the skill of your PROFESSIONAL negotiators (Find a good one), Property taxes, sorry you just gotta pay them. Countrywides foreclosure department is also quite reasonable, I have dealt with them before on numerous occasions, and have never had a major problem. Finally it all comes down to how much equity is left in there to make it work.
Good luck.