What To Do About Tax Liens & Judgments

If you have been having financial difficulties for some time, you may have liens and judgments filed against your property such as:

  • Federal and state tax liens
  • Mechanics liens
  • Judgment liens

Before initiating a short sale, your CDPE should order a title search to identify any such impediments that would prevent a short sale from occurring. If anything does show up, you must determine if the claim is valid, and then set about having it released from the property. These procedures will not absolve your indebtedness; they will only clear your property to permit the short sale to go through.


Removing Federal Tax Liens


If there is a federal tax lien recorded on your property, it must be released and a "Certificate of Discharge" letter must be issued before the sale can be finalized. To make application, use IRS Form 14135.

The Mark Boyland Short Sale Team has handled successful negotiations with the IRS in obtaining Certificate of Discharge letters for properties subject to liens of more than $100,000!


Releasing State Tax Liens


The New York State Department of Taxation and Finance will release tax liens on a property with extensive documentation including a letter explaining the circumstances of the sale, amount of consideration to be paid to the state, description of other property you might own, proposed closing statements, title search and other sale-related documents. For a release to be issued, your paperwork must be perfect.

With our experience, The Mark Boyland Short Sale Team has successfully completed the release of NY State tax liens in excess of $17,000. 


Resolving Mechanics Liens


If a contractor, subcontractor or another involved in the construction or improvement of the property has obtained a mechanics lien you cannot sell without first paying off the debt. The solution is to work out a settlement with the lien holder for partial payment in return for a sworn affidavit releasing the lien. When the creditor understands that full payment is impossible and that the alternative is to receive nothing should a foreclosure result, they may conclude that something is always better than nothing.


Removing Judgment Liens


A judgment lien is a court ordered claim against real property, usually after a creditor has sued and obtained a judgment in the case. A good example is when a credit card company seeks repayment and files suit. Like a mechanics lien, the solution is to work out a settlement with the lien holder for full or partial payment in return for a sworn affidavit releasing the lien. As noted above, when the creditor understands that the alternative is to receive nothing should a foreclosure result, they may conclude that something is always better than nothing and accept partial payment.

 

Have Liens & Judgments to discuss? Talk to a member of the Mark Boyland Short Sale Team in strictest confidence. We have successfully closed short sales in Westchester, Putnam, Dutchess and Bronx counties. Call 1-800-244-6005 or fill in the form below:

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DISCLOSURE: The brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Short Sale Hotline
800-244-6005