Judgement Lien

[Bradyw]

What happens if you're trying to get a modification and title search reveals that there's a lien on the property?

[Evan Bedard]

What happens if you're trying to get a modification and title search reveals that there's a lien on the property?

Is this an IRS tax lien?

If so, what you would need to do in order to qualify for a HAMP modification is to contact the IRS and ask if they will subordinate their lien. A federal tax lien is a priority lien ahead of all other creditor liens. A HAMP modification requires that the modified loan be in first lien position and recorded as such. The IRS is willing to help such homeowners by subordinating its tax liens, but they must be notified and agree.

It is a HAMP requirement that all other lien holders are required to take a subordinate position. Since IRS liens normally are a priority lien, unless you have gotten a release, or an agreement from them to subordinate, they can't modify your loan.

Do I Need to Contact the IRS for a Lien If I Want a HAMP Modification Loan? | eHow.com

In late 2008, the IRS announced its commitment to helping lenders expedite homeowner retention processes by subordinating its tax liens. Many times, tax liens take priority in repayment over mortgages, keeping homeowners from selling, refinancing or modifying a loan without first repaying the tax debt.

The lender wants to know that the IRS has agreed to subordinate their debt to secondary priority, behind the modified mortgage, before they agree to change your loan terms.

You must apply for a certificate of lien subordination using IRS Publication 784, available on the IRS website. Mail it to the appropriate Collection Advisory Group address for your region.

http://www.irs.gov/pub/irs-pdf/p784.pdf

[Bradyw]

Thanks for your quick response! No, it isn't an IRS lien. If there IS a lien, it's for wage tax - school district.

How does that affect things? They just subordinate?

Since this isn't a refi, that makes sense.

[Jeffrey L. Shurtliff]

Thanks for your quick response! No, it isn't an IRS lien. If there IS a lien, it's for wage tax - school district.

How does that affect things? They just subordinate?

Since this isn't a refi, that makes sense.

You have a property tax lien on your property and it must be paid to get it off. You will not be able to modify or sell the home until it is paid. This lien also has power, because it is powered on the property pursuant to your state and county tax law. Whenever they want to they can execute the lien and sell for the taxes.

[Bradyw]

It is NOT property tax!

[fightforit]

Evan -thanks for posting this.
I think we need to get this info out there. It may have been fate for me to see this post of yours today.
Trying to help someone who's auction was today- in getting a hamp-
they were about to fax their paperwork for last minute try at hamp.
LISTEN UP FOLKS !!!!!!!!!!!!!

They had NO IDEA they had a tax lien on their property because they have not checked their County registry of Deeds!!!

I had seen it the week before and let them know what to do. Had I not seen your post today it might be all the difference in foreclosure or Hamp.