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There is an IRS lien on property

Bethel Park, PA |

If my home gets sheriff sale would the person bidding have to pay lien first its $47000 in order to get clear title? The IRS was also served foreclosure documents but they said they would not release the lien . The foreclosure was dismissed w/o prejudice . I was considering a short sale but my lender said no because the IRS would not release it,

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Attorney answers 4

Best Answer
Posted

IRS liens will pass with the transfer of title. In reality, no title company would insure title without a satisfaction from the IRS. If the house is sold at a sheriff sale, the bidder would take subject to the IRS.

Posted

I agree with the previous answer and the liens and mortgage will need to be settled in order of priority.
Good Luck

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Posted

I agree with my colleague. You would need to reach a settlement with the IRS prior to or as part of a sale.

To reach me call 215-248-0989. Harborstone Law Group serves Philadelphia, Montgomery, Delaware, and Bucks Counties in Pennsylvania. Answers to any question on this forum are for general information purposes only and do not constitute legal advice or establish an attorney-client relationship between Harborstone Law Group or its attorneys and you. This type of forum cannot substitute for a consultation with an attorney.

Asker

Posted

If I let the IRS debt stay until they release it in 2016 do you think the lender is going to hold off on refilling foreclosure? Also Hsbc did not submit copy of note or mortgage just paper showing principal sum and date of agreement and a request of default which by the way it looks like they somehow copied my signature on that because it was notarized in 2010 and I refi in 2007. Your thoughts ???

Daniel Edward Mueller

Daniel Edward Mueller

Posted

Only the bank would know its intentions regarding refiling. You may wish to set up an appointment with a foreclosure defense attorney to discuss any irregularities in the mortgage and plot out a course of action. As one of my colleagues noted, bankruptcy is also a potential option, depending upon your financial circumstances and your goals.

Posted

First of all, with no pending foreclosure case (you say it was "dismissed w/o prejudice") there can be no judicial sale. Consider filing a Chapter 13 bankruptcy case. You may be able to get the IRS to come to the table if you're in Chapter 13. Consult with a PA bankruptcy attorney to get more reliable advice.

This answer does not constitute specific legal advice or create an attorney-client relationship between Glenn R. Reiser, Esq. or LoFaro & Reiser, LLP and the individual or company whose posts we are responding to.

Asker

Posted

The IRS has put my debt in "uncollectable status" . I'm working with a tax advocate and each year I will resubmit. She said in 2016 I think in May the IRS will clear the debt . It's 10 year statue and it was filed in 2006 .