IRS lien Short Sale (settlement, accepted, attorney, state)

[dmarie_86]

Does anyone know how long it normally takes for the IRS to discharge a lien? We recieved verbal short sale approval on 4/10, but will not receive written approval unti the lien is lifted from the title. The owner is underwater and will not be getting a dime from the sale. The discharge package was submitted to the IRS the week of 4/14. Any info/experience is greatly appreciated!!!

[Modification Specialist]

Originally Posted by dmarie_86

Does anyone know how long it normally takes for the IRS to discharge a lien? We recieved verbal short sale approval on 4/10, but will not receive written approval unti the lien is lifted from the title. The owner is underwater and will not be getting a dime from the sale. The discharge package was submitted to the IRS the week of 4/14. Any info/experience is greatly appreciated!!!

Waiting for the IRS will be considerably longer, than you doing the leg work.

You:

• Proof/receipt - payment was made and accepted by the IRS.
• Receiving satisfaction of lien.
• Forwarding document to court registry where the title in filed.
• Getting proof lien was removed from title (getting revised title)
• Providing copy of document to attorney or title company handling the real estate closing

[AZJoeD]

There really is no telling if the IRS will discharge the lien or how long it will take, but from the IRS website I found this tip that says:

You need to get your discharge or subordination application to the IRS at least 45 days before the sale or loan settlement meeting. If the Notice of Federal Tax Lien is discovered late, your sale or loan could be delayed.

So figure at least 45 days plus the normal closing period for your sale 30-45 days. Probably longer.

[dmarie_86]

Thank you!