Notice of Default -

2 Replies

A friend received a Notice of Default several weeks ago. He found out there are tax liens on the property he and his brother held title to as Joint Tenants. Brother passed away 3 months ago. His brother lived in the home as primary residence.

Surviving brother wants to negotiate the IRS tax liens then sell the home.

Questions:

Should the surviving brother remove his name from title so the brother’s family can negotiate with the IRS?

The tax liens as they stand wipe out all equity- total $240K

Have any of you had success with negotiations with the IRS?

Can you recommend a tax attorney in California?

What would you do if you were in this situation?

Goal is to try to have some equity at end of sale for common law spouse otherwise she is essentially homeless.

Thank you in advance for any advice

Whatever your friend does, have him do it within 111 days of the filing of the NOD because after that, they will cry the sale.

My opinion would be, don't remove himself from title. Doing that eliminates him as a party of interest. Reach out (or have a representative skilled in this area reach out) to the IRS and lay it all out. The lien is for a deceased person. The surviving heir has no liability and should be relived of the lien...or something to that effect.

Sadly, as most of us know, the IRS is probably the only entity that can get money from dead people...through their estate. They want their money and they have their hooks into a property previously owned by the person that owes them money. Maybe they will negotiate, maybe they won't. There are some strategies that can be played out here but time is not on your side. A competent tax attorney may have some sage advice.

As mentioned, do Not QCD your interest....I assume the irs lien is only against the other party’s 1/2 interest.  Talk to a probate attorney, they deal with this all the time.