Question: Property with IRS Tax Lien

[Christopher Morales]

Hello Everyone!

I have been doing REI for a few years now but never ran into this problem before. There is this house i want to buy and the seller wants to sell it to me. Problem is the IRS has placed a tax lien on the property for like $150k that he owned them from his failing business. The house is probably only worth about $20k in the condition it is currently in. The guy wants to sell it but has no idea what to do.

He said there is something called "an offer in compromise" that we could do to the IRS but that he said i has to be attached with the money for the offer. Apparently they can deny the offer and take the money and just apply it to the balance he owes them and not let the lien go?

If anyone has any experience in this i would appreciate it, i will be reading through several other threads as well so hopefully i can solve this problem and snag the property.

Thank you

Chris

[Steven Hamilton II]

Christopher Morales,

I have had the IRS release liens so the taxpayer can move in certain circumstances if it would cause a hardship.

The IRS will demand whatever equity is left after selling costs.

Offers in Compromise take about 90-120 days to even hear a word. What needs to be done is the taxpayer advocate being called to see if they can assist in lifting the lien.

-Steven