USING EQUITY TO PAY OFF IRS?

[Miles Presha]

My client has an issue -- 140K IRS bill. They recently closed on a house they were renting to own. They are broke, but the house has almost 200K equity. What are some realistic options they can pursue? Are there any lenders that would issue a HELOC or possibly hard money? What do you think?

[Randy E.]

Originally posted by @Miles Presha:

My client has an issue -- 140K IRS bill. They recently closed on a house they were renting to own. They are broke, but the house has almost 200K equity. What are some realistic options they can pursue? Are there any lenders that would issue a HELOC or possibly hard money? What do you think?

Like @Mark Safrin, I worry about their ability to pay back such a loan.  If the question is what is best for the client, I recommend selling the house, using the profits to repay the IRS in total, and looking for a low-cost housing alternative.  They'll sleep better knowing they have no debt like that.