If I have a levy on my home from the IRS can the home be sold just as quickly as if there was no levy. Can I cut a deal with the IRS to get the home sold and the IRS paid off?
2006-08-12 05:21:17 · 8 answers · asked by markelliott32 2 in Business & Finance ➔ Renting & Real Estate
it will not delay it at all . The levy will be paid off first and then you will get the balance and the home will transfer to the new owner . All judgments , levies, and bills are paid off so the house can be sold with a clean title .
2006-08-12 05:26:03 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The levy is similar to a lien or a mortgage on the property. You can still sell the house as fast as you can. What will happen is the levey will show up during the title search and it will have to be paid from the proceeds at closing to give the buyer a clean title. What if the sales price is not enough to cover the mortgage, taxes, and the levy? The sale will no go through unless you can satisify the levy by bringing money to the table.
You can try to negotiate with the IRS, depending on how much you make you can get a good chunk knocked off.
2006-08-12 13:03:33 · answer #2 · answered by El_Nimo 3 · 1⤊ 0⤋
YES, you absolutely can sell your home when you have an IRS tax levy. Believe me ... they want the money.
What happens is that the title company or escrow agent has to request a NFTL payoff from the IRS that has the full amount needed to release the levy. You will have to fill out a third party authorization form in order for them to obtain this information.
The levy will be paid off from the proceeds and a Certificate of Discharge will be filed. The escrow agent or title company will assume responsibility for this, but you will be the one paying the fees involved.
2006-08-12 18:49:26 · answer #3 · answered by BoomChikkaBoom 6 · 0⤊ 0⤋
The levy will be paid at closing. The chief glitch is sometimes the IRS will not give the closing agent an exact payoff in time for closing so the closing agent will want to withhold some extra $$ in escrow. Usually the IRS will try to be cooperative; indeed I've had IRS agents attend closings & deliver their release in person.
2006-08-12 13:47:13 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If the IRS has a levy on your home, you can't sell it at all!
You might be able to cut a deal with the IRS, but you'd best be working with a competent tax advisor. There are a thousand pitfalls and you need to avoid every single one of them.
2006-08-12 14:19:39 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
thats a good question... you would think that the irs would lift the levy long enough for the sale so you would have the money to pay them... i would call the number on the levy notice and make sure
2006-08-12 12:28:31 · answer #6 · answered by monie99701 4 · 0⤊ 0⤋
no and probably not. The Levy would come up in a title search, but the buyer would end up paying the taxes out what you would have made on the sale. If you owe more than you would have made, the sale might not be possible.
2006-08-12 12:27:51 · answer #7 · answered by sethsdadiam 5 · 0⤊ 0⤋
the levy must be cleared before good title can be conveyed
irs will negot but its hard to find out how much due to confidentiality agreements
2006-08-12 12:24:50 · answer #8 · answered by titanbooboo 3 · 0⤊ 0⤋