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Updated about 8 hours ago on . Most recent reply presented by

User Stats

277
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199
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Bruce D. Kowal
  • Metro NY + New Bedford
199
Votes |
277
Posts

The $500K Sale That Almost Died

Bruce D. Kowal
  • Metro NY + New Bedford
Posted

"The $500K Sale That Almost Died"

Picture this: Family can't afford their current home payments. They need to sell and downsize to survive financially. But there's an IRS lien on the property. The family assumes they're trapped - they can't sell without paying the full lien amount first. 😰

This is one of the most damaging misconceptions in real estate. According to Texas National Title President Latra Szal, families regularly believe IRS liens make their property unsellable. They suffer financially while sitting on a solution they don't know exists.

The IRS will issue a "Conditional Commitment to Discharge" letter that accepts available proceeds from the sale - even if those proceeds don't cover the full lien amount. The key is proper documentation and following IRS procedures exactly. The property sells, the family gets relief, and the buyer receives clean title insurance. ✅

(Technical note: This process requires submission of Form 14135, Application for Certificate of Discharge of Property from Federal Tax Lien, and results in IRS Letter 403, Conditional Commitment to Discharge Certain Property from Federal Tax Lien (Value). The procedure is outlined in IRM 5.12.10.3.2, specifically IRC 6325(b)(2)(A).)

Szal notes that without this IRS commitment letter, title companies cannot issue Owner's Title Policies to buyers. But with proper process, the transaction closes successfully and everyone moves forward.

Don't let tax lien misconceptions trap families in financial distress. 🏠

The solution path:
🔍 ASSESS the lien situation and available options
ACTION through proper IRS procedures
🛡️ ASSURANCE of clean title transfer

Source: "10 Fun Facts About Federal Tax Liens" by Latra Szal, President, Texas National Title

#TaxLiens #RealEstate #TitleInsurance #IRS #RealEstateClosing

"Bruce D. Kowal is a Certified Public Accountant with an MS in Taxation, maintaining a nationwide practice focused on IRS Practice and Procedure and federal taxation of real estate."

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