If I have a tax lein against my house what would happen if I walked away from it Its not the banks its the IRS

Answer 1

The IRS tax lien attaches to ALL your property and rights to property. In this case PART of your property is your house.

If there is a mortgage on the property, it will be ahead of the tax lien unless somebody screwed up really really bad.

If you walk away from it (for example, because you had no equity disregarding the IRS lien) and the bank foreclosed, IRS would probably get nothing.

If you have some equity, but not enough to fully pay the lien, you could sell it and IRS would discharge the property if it was paid your equity. There are a bunch of hoops you have to jump through to get the process rolling. I handle these kinds of messes as part of my practice as an enrolled agent. You can email me through my profile if you need more information about it.

Answer 2

You'll lose your house. If the foreclosure sale does not bring enough to satisfy the mortgage and the IRS lien, the IRS will continue to take enforcement actions against you and the mortgage lender may pursue you for payment of any shortfall if it's a recourse mortgage.

Answer 3

The IRS lien will follow you. While they do put it against the house as well, it will follow you for 10 years. You can let the house go to foreclosure but it won't make the lien go away. If you sell the house, any proceeds will go to the IRS.

Answer 4

If you walked away from the house and there is a mortgage on the property, the lender would pay the tax lein and then the property would be theirs....

Answer 5

You are ultimately held responsible for the debt. If as an example you owe the IRS, or for that matter any institution that you have a signed agreement, a total of 100,000 and they take posetion of your house and sell it for a rediculous price of $1.00, you are still on the hook for $99,000.00, or jail.pp