Lien Subordination
Subordination of the Lien is one way for a taxpayer to secure financing to pay for their federal tax. In this process, the IRS Lien is made secondary (or Subordinate) to the interest of another creditor so that the taxpayer can avail some form of private financing with which to pay the debt.
Subordination of the Lien can be advantageous to a taxpayer who owns a house and wants to get a home equity loan to pay off their tax debt. As long as the proceeds of the loan are paid to the IRS and if they collect an amount up to the value of the Tax Lien or higher, then the IRS will allow Lien Subordination.
This is a very common procedure yet it is difficult to accomplish without professional assistance. A Federal Tax Lien is given to secure the government’s interest in any property subject to the Lien. Barring acquisition of security interests that are higher than the IRS lien, professional lenders won’t lend funds to a taxpayer with a tax lien due to this reason.
By making the IRS Lien secondary, the IRS will allow a professional lender to take a superior interest greater than any IRS claims on the property value. In response, the IRS will have the right to claim all proceeds that are in excess of the sales costs, and the sum due to Lien holders, up to the sum of tax debts owed. The process involved in the Subordination of the Lien is rigid: so long as the IRS is getting the funds from the closeout or the refinance of a possession, the institution will almost always allow a Subordination.
To take advantage of Lien Subordination the first thing you need to do is find a lender who will finance your loan. Once you have secured your financing, you should get employ the help of tax experts like Premier Tax Solutions. This team of professionals will supply the IRS with the necessary information about your property and pending loan. They will then be the one who will ensure that you get your Lien Subordination. The processing time of subordination would normally takes 30 to 60 days.
So let Premier Tax Solutions SETTLE your tax debt and remove your Tax Lien. With us, we can temporarily lift the lien to allow you to sell or refinance. Fill out the necessary forms and call us today. An experienced Tax Resolution Consultant will call you back for a FREE consultation. Call us at our toll free number 1.800.554.0146.