Is It Possible To Do A Short Sale With A Federal Tax Lien?

Posted on May 13, 2012 in Roseville and Sacramento Short Sale FAQs

Hello everyone this is Mark Peek at Keller William’s Real Estate, your short sale specialist in the Roseville and Sacramento area. Today’s topic is regarding IRS tax liens that have been attached to your house; the tax lien could have happened in the past or is recent, but either way, it’s been attached to your home loan and you need it removed in order to complete the short sale. You may be underwater at this point, wanting to do a short sale and wondering how that will happen. Will the IRS actually negotiate that, will they remove the lien and can we move forward with the sale?

I can tell you that I can negotiate with the lien holders, such as Bank of America, Chase, Wells Fargo, and get them to settle for less, but the IRS will not settle for less. They will, however, appreciate the fact that you’re trying to avoid foreclosure and will work with you in order to complete a short sale and remove the lien. They won’t necessarily discount your payoff on your tax lien, but they will work with us to get it removed, as long as you provide the requested paperwork. There is a lot of paperwork that they require, such as a buyer’s appraisal and certificate of tax discharge documentation; essentially you need to make sure all of your financial documents are in order to get the federal tax lien removed so we can close the short sale.

If you have any specific questions or you have a situation similar to this, please give me a call or click Start Here at the top of the page. I would be happy to follow up with you, answer all of your short sale questions and help you with your specific situation. Again, I’m Mark Peek with Keller William’s Realty in Roseville and Sacramento and I’m your short sale specialist for the entire Roseville and Sacramento area. I look forward to working with you and meeting your short sale needs.

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Should I Continue Paying Real Estate Taxes During My Short Sale?

Posted on Mar 23, 2012 in Roseville and Sacramento Short Sale FAQs

Hi Mark Peek here at Keller William’s Real Estate. I am your short sale specialist in the Roseville and Sacramento area and I dedicate myself to educating homeowners and providing them with the resources and information to avoid foreclosure and successfully short sell their home. Today’s topic is about a question that I get asked quite often, "Do I have to pay real estate taxes during a short sale?"

The answer to this question is absolutely not. You don’t have to because the lender realizes that in a short sale they will have to cover it. Even if they let the property go to foreclosure, they’d still have to pay the real estate taxes. They’d also incur penalties if the taxes weren’t paid. Banks have actually begun to realize that it’s better for them to pay for the real estate taxes before they become penalized and the balance grows quite a bit. If I remember correctly the penalty is 10-15% of the balance if the taxes aren’t paid by the due date.

Again, real estate taxes do not have to be paid during a short sale, however there are a few things I do highly recommend that you keep paying during a short sale and one of those is your homeowner’s association fees, if at all possible. With HOA fees, lien holders usually will not pay those in a short sale because if they were to foreclose on the home they wouldn’t have to pay the HOA fees.

If you have any specific questions about your situation or what you should pay or what you don’t have to pay in a short sale, please give me a call or click the Start Here button at the top of the page. If you’re also wondering if it’s the right decision for you to move forward with your short sale, what the value on your home is and how long it will take for you to get back to a break even situation, please utilize our Short or Stay Calculator. This can be a very helpful tool if you feel like you don’t know which path to take. Again, please call me, Mark Peek, your short sale specialist in the Roseville and Sacramento area, with all of your real estate and short sale questions.

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