If you have an IRSlein on your house, what happens to the lein if the house is forclosed on?

Asked on December 9, 2010 under Real Estate Law, Pennsylvania


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Well, it depends on whether or not there is enough money to cover all the encumbrances - mortgage and liens - on the property.  If there is enough to pay the mortgage holder and the IRS then the lien is released.  If , however, there is not enough to pay the IRS the lien is not wiped out.  Instead, the IRS will come after you for the money in another way I am sure.  You should consider seeking help with all of these issues here.  You should see about modification of your loan and you should seek help in settling the IRS debt with a monthly installment plan.  IRS debt is also not wiped out in a bankruptcy.  Get help.  Good luck. 

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