Many hard-pressed homeowners have made loan payments on their mortgage at the expense of fulfilling their obligations to the U.S. Government; that is, the Internal Revenue Service (I.R.S.). The result in many cases has been what is generally termed “an I.R.S. lien” on the homeowners’ property, a certain stumbling block to a clean short pay sale of that property.
Now, the I.R.S. has offered significant relief to some distressed homeowners. The agency has announced that it will assist homeowners of “distressed property” against which an Income Tax Lien has been recorded to expedite either a refinance or sale. The agency says that applications to remove such liens will be acted upon in 30 days. In some instances the I.R.S. will withdraw the lien, allow refinancing, then re-record the lien; in the case of a distressed sale “short payoff sale”, the lien against the property will be withdrawn and a new lien against the seller recorded with the County Recorder’s office after close of escrow. There are even some conditions under which the I.R.S. may even forgive all or a part of the amount due. Visit http://www.irs.gov/ for additional information.
It is always frightening for an owner to be faced with the loss of a home. If faced with foreclosure, the owner of a home that owes more to the lender than the property is worth should certainly consider a “short pay sale”; it’s definitely a better alternative to a foreclosure.
As experienced short sale Realtors, we recommend that you start the process as early as possible. The entire short sale process can take between 3-5 months from beginning to end, sometimes longer.
We Serve the San Gabriel Valley Cities of Arcadia, Azusa, Baldwin Park, Covina, Diamond Bar, El Monte, Duarte, Glendora, Hacienda Heights, La Puente, La Verne, Monrovia, Phillips Ranch, Pomona, San Dimas, Santa Fe Springs, Walnut, West Covina, and Whittier. We also Serve the Inland Empire Cities of Chino, Chino Hills, Claremont, Fontana, Montclair, Ontario, Rancho Cucamonga, Upland, and surrounding areas.
Hector Aguilar of The ALMA Real Estate Group at Coldwell Banker Town & Country
Office (877) 332-4442 Ext 301, Direct (626) 255-2783
We are not the FHA, VA, USDA, HUD or any other government organization. The content on this blog is intended for information purposes only.
It’s nice to see the IRS is trying to work with homeowners in this troubled economy. Now if they could only put together a plan for the 1099A and 1099C crisis.
Nice blog. Seems IRS is taking some good steps.