Is Refinancing or Selling Property Possible with an IRS Tax Lien in Place?

Facing an IRS tax lien can be daunting, especially when considering crucial financial decisions like selling or refinancing a property. Understanding the intricacies of an IRS lien and seeking IRS help with taxes is essential. If you find yourself grappling with such IRS problems in Dallas, the Law Offices of Nick Nemeth is here to assist. As an experienced Dallas tax attorney, we focus solely on tax lien assistance, IRS lien withdrawal, and more. In this blog, we delve into the question: “Is Refinancing or Selling Property Possible with an IRS Tax Lien in Place?” Our aim is to provide clarity and solutions to those navigating the complexities of the IRS tax lien list and related challenges.

The effects of a tax lien on your property

When the IRS places a tax lien on your property, it becomes a legal claim against your assets. This means that your property may be used to satisfy your outstanding tax debt if you fail to resolve it. A tax lien is a public record which could make it challenging to secure loans or credit. This situation can create financial difficulties and limit your financial flexibility, causing emotional distress due to the uncertainty surrounding your property’s fate.

How to Refinance Property With an IRS Tax Lien

Taxpayers can refinance property with an IRS tax lien, but it’s a complex process that involves several steps:

  • Contact the IRS: Opening communication with the IRS is crucial. Discuss your outstanding tax debt and explore potential repayment options. Getting an experienced tax lien attorney to help is highly advisable to get a favorable outcome. 
  • Work on Your Credit: Improving your credit score can make you a more attractive candidate for refinancing. Make timely payments on other debts and obligations.
  • Explore Lender Options: Some lenders may consider refinancing options if you can demonstrate a commitment to resolving your tax lien.
  • Consult with Our Tax Attorneys: Our team of tax attorneys focus solely on IRS problems. We can help negotiate lien withdrawals and propose solutions that meet IRS requirements.

How to Sell Property With an IRS Tax Lien 

Selling property with an IRS tax lien is possible but involves specific steps:

  • Notify the IRS: Inform the IRS of your intention to sell the property. They will need to approve the sale and determine their interest in the proceeds.
  • Clear the Lien: Typically, if you are selling the property at a lower price than the mortgage amount, you can request the IRS to discharge the lien on the property to facilitate the sale. Our qualified tax attorneys can assist in negotiating lien withdrawal or discharge with the IRS, enabling you to proceed with the sale.
  • Settlement Agreement: You may need to negotiate a settlement with the IRS to satisfy the debt before the sale.

Our Dallas Tax Attorneys can Help

An IRS tax lien can be challenging, but it’s not insurmountable. With the right approach and the assistance of our seasoned team of lawyers at the Law Offices of Nick Nemeth, you can explore options for refinancing or selling your property while resolving your tax lien. Our professionals can negotiate with the IRS on your behalf, offer tailored advice, and ensure that your rights are protected throughout the process, alleviating the stress associated with IRS problems. For tax lien assistance, call (972) 484-0829 or fill out our contact form.

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