can I get a mortgage refinance with a tax lien?

Question by tina t: can I get a mortgage refinance with a tax lien?
Is there anyone who would know about this?.. and what do I need to do about acquiring this refinancing? any help would be appreciated
First of all Ms Angie.. I am paying the taxes the lien was issued because I had sub par reprensentation.. when I was trying to the taxes PAID… so before you judge and shoot off at the mouth.., ask a few more questions

Best answer:

Answer by Jody L
you might have to take out a larger mortgage to pay off the lien

Know better? Leave your own answer in the comments!

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6 Responses to can I get a mortgage refinance with a tax lien?

  1. Angie says:

    You probably can’t get refinancing with a lien. Any reputable lending institution won’t touch it. So, if in fact you owe this tax money, don’t be a deadbeat and pay your taxes.

  2. wartz says:

    You can not get your mortgage refinanced without either paying off the lien or getting IRS to subordinate its lien to the new loan. By subordinating, IRS agrees that the new loan will take priority over its lien. IRS will subordinate if you were doing something that improved the potential for collection of the tax. An example would be refinancing at a lower interest rate. I handle these types of applications as part of my practice as an enrolled agent representing taxpayers. If you would like more details, you can email me through my profile.

  3. Gary says:

    Sorry you can not do it until you pay off the lien holder.

  4. Charlie & Angie G says:

    A IRS lien is no different than any other lien. You can refinance as long as there is enough equity in the property and your credit is good enough.

    Think of it this way; If you had a 1st mortgage and a home equity loan and you refinanced the 1st, the home equity loan would have to be paid off at closing.

  5. mefuture says:

    What is your credit score? if you have enough equity and have a good repayment record on all your debts, you should be able to get a refinance. If the mortgage co. brings up the lien issue then you can always explain what exactly happened.

    The secret is to get quotes from multiple lenders and speak to each one about your problem. That will also give you insights on what your options are (realistically).

  6. Chase R says:

    Very few lenders will allow you to refinance unless there is enough equity to pay off the tax lien in the process. You may be able to get the IRS to subordinate (take a 2nd lien position behind the new mortgage) but this is unlikely unless you are STRICTLY refinancing for a lower rate. If you intend to get any cash out or do any debt consolidation, the IRS will not typically subordinate because it weakens their interest in the property. Most lenders won’t accept this even if the IRS is willing to subordinate. They typicall want any judgements or liens that are not mortgages paid off before they will extend additional credit to you. If you can roll the IRS debt into the mortgage, do it by all means unless you are disbuting what you owe. Eventually the IRS will take the house if the debt is not paid.

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