18 June 2020

Spokane, WA: Sell a house with a tax lien? Of course you can!

Has the IRS filed a tax lien with your local county recorder’s office? And now you need to sell your home? You have options.

If there is a federal tax lien on your home, you must satisfy the lien before you can sell your home. Let us look at a couple different scenarios:

You have equity in your house, enough to satisfy the lien completely. In this case the tax lien will be paid first, and you will get what money is left.
You have equity in your house, NOT enough to cover the lien. What you need to do is request a Lien Discharge from the IRS. This will allow the house sale to move forward. Note that the IRS will receive all the proceeds of the sale of your home.
You do not have equity in your house. The IRS could still grant a lien discharge in this situation. Again, a Lien Discharge request is used here.

Remember that the point of the IRS’ filing of a Lien is to ensure THEY get paid before you do.

Also keep in mind that it may take the IRS quite a while to process your lien discharge. Factor this into the overall house sale time frame.

You can also request a lien discharge if you need to refinance your house.

Need help selling or refinancing your home with a tax lien? Get in touch with me for the answers you need and deserve.

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