Completing a Real-Estate Mortgage Transaction When Subject to a Tax Lien: Part III

Borrowing to Buy a Residence When Subject to a Tax Lien

One of the more extraordinary powers one can wield to improve one’s life is the power to borrow money at a favorable time, especially to buy a home. A home is often one’s first and best investment, it is an investment that requires most people to borrow. And that’s one of the serious potential frustrations of a tax lien. Will a tax lien keep you from the American dream of owning a home?

The Borrower’s Problem. The problem is that borrowers who allegedly owe a tax debt don’t look especially creditworthy. Mortgage applications require borrowers to disclose material financial conditions, including tax liens. And even if the borrower didn’t disclose tax liens, which could well be the serious crime of mortgage fraud, lenders would likely discover them through their credit checks. In short, a tax lien could mean that no mortgage is available.

The Borrower’s Solution. Yet, a tax lien doesn’t necessarily mean that you cannot buy your dream home. You may well still be able to qualify for the mortgage you need to buy a residence. The Enrolled Agents at Highland Tax Group have helped many homeowners, including those buying their first home, qualify for a mortgage. The tax lien that you face may, for instance:

  • be invalid and subject to challenge and discharge under the IRS Collection Due Process without your payment in whole or part;
  • apply only to someone other than you, such as a spouse, former spouse, or another family member, employer, business entity, or acquaintance;
  • fall under the IRS’s Fresh Start Program or a similar federal, state, or local program providing for relief to deserving taxpayers;
  • be of the type that the IRS will discount and discharge under an offer in compromise that settles the alleged debt;
  • qualify for payment under an installment agreement that you can readily manage within your income while still qualifying for a mortgage;
  • soon expire due to a statute of limitations, after which it should no longer prevent mortgage financing.

The Enrolled Agents at Highland Tax Group offer each of these tax-resolution services to help you qualify for a mortgage to buy your dream residence, even when subject to a tax lien. Don’t lose your dream home. Don’t lose the chance at your first and best investment in your own home. We handle all IRS communications and conferences. Trust and believe in us, just as our other clients do. Contact us now online or toll-free at 888-738-8182.