IRS Federal Tax Lien on Home Under Contract

[Ben G.]

We have a property under contract and our title company found a IRS Tax Lien attached to the property.

Ron Legrand says if a property has a tax lien attached to it, that if title transfers we can request a lien release from the IRS and that they will grant them.  In his decades of experience he has done this 20+ times.

A attorney tells me that the IRS will not release the tax lien. If that's the case, then what are our options?  We need the seller to cooperate with us to negotiate the tax lien, he is not willing to do so because my attorney says any proceeds he was to receive will go to the IRS.

Does anyone in the forums have any experience with this complicated IRS Tax Lien situation on deals that they've done?  What was the solution?

[Greg H.]

No lender will loan money or title company will issue title insurance unless the lien is released prior to closing

The only potential buyer is a cash buyer who is willing to close subject to the IRS lien and without title insurance.  A significant discount would be needed to satisfy the additional risk the buyer would take