Property tax lien & IRS lien

1 Reply

Hey everyone! I have a very specific situation that I'm trying to understand and work through. My dad owns 6 properties and hasn't paid the taxes on them since 2014 (don't ask me why). He also has an IRS lien that he needs to be paid. All in it is roughly $200k split evenly between the property tax lien and the federal tax lien. I want to assist him and salvage the properties but I'm not exactly sure the best way to proceed. There is a tax sale coming up soon and if the property taxes aren't paid then they will be sold. I'm considering paying off the property taxes in full only if he quit claim deeds the 6 properties over to me. Then I would hope to rehab 1 or 2 to and sell them to pay off the IRS lien. Does anyone have experience with this? Does my process make sense? What else should I be considering? Could I get a hard money loan to pay off the IRS taxes and then once the properties are free and clear do some sort of construction or rehab loan (none of the properties have mortgages on them). I'm aware I won't be able to get a conventional loan with the IRS lien on the properties and that a certificate of discharge more than likely wouldn't happen. Thanks for your help!

@Jamel DaCosta Hey Jamel, tough situation here. Most lenders (including hard money) will want to see the IRS liens paid off before lending. Depending if you have enough time before the sale, you could sell one of the properties that you believe you can recoup the $200k - even if that means selling at a discount to obtain the cash quickly.

With that cash, you can pay off the other liens and still keep the 5 of 6 properties. 

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