Panicking about the legal claims against your property? Here’s what you need to know about it.- Zack Childress Reviews
A Tax lien is one of the spine-chilling terms in the IRS (Internal Revenue Service) lexicon and if you owe some back taxes, the taxing authority may place a lien on your property. So are you wondering what does it mean to have a tax lien attached to your property? Don’t fret! This article Zack Childress Reviews about what to do if you get a tax lien on your house will discuss everything that you need to know about it.
A tax lien is the government’s last resort to force an individual to disburse the pending tax amounts. It is a matter of public record and once a lien is attached to a property, the house owner cannot borrow money, sell, or refinance the property.
First, you need to know, the type of lien. Yes! There are different types of liens, you could have a federal tax lien or a state tax lien or county or city tax lien on your house, and there is one more thing called the super lien, which is all about being behind on homeowner association fees. The severity depends on the time frame and the amount you owe. Generally, you should be concerned about paying back the smaller government debts first, but that does not mean federal and state tax liens are not serious. Depending on certain factors, the severity will take a toll on you. https://zacckchildress.wordpress.com/
Zack Childress automated wholesaling systems
As far as state tax liens are concerned, the specifics vary and if you have a federal tax lien, you have some time to work things out. When it comes to the federal tax lien, the likelihood of keeping your house goes up considerably, but still, it is worth to note that it is a financial inconvenience and it will affect your credit score too. Nevertheless, if you ever get a tax levy, that is a different genre. While a lien is a legal claim, a levy is a legal seizure that essentially takes the assets to satisfy the tax debt.
For the lien placed, even if your house is not taken over, other assets could be in trouble and if a taxpayer refuses to pay the pending taxes, the bank account, other federal payments, the wages, house, car, may be levied. Call up the number on IRS notice informing that you owe money to the government and get to know about the process like what has to be done.
Sometimes you may be able to work out better than what you can expect, for example, the IRS will allow subordination which allows other creditors to take their debts before the IRS. This in turn, allows you to get a loan or mortgage, depending on certain factors, the IRS will allow an offer in compromise, which allows the property owner or taxpayer to satisfy the debt with a smaller amount. With that said, it only makes matters worse to ignore the notices, so it is always good to correspond promptly. If you can work out on other available options like installment agreement, making use of your credit card, and refinancing your house to resolve the case, by this way, you are actually making the debt smaller avoiding further complications. ( Zack Childress automated wholesaling systems )
We hope you found this article helpful, for more insider view about this concept stay tuned to Zack Childressvirtual real estate investing club that equips you with useful real estate information.
Conclusion:
Zack Childress Reviews, the real estate expert, and also the founder of the Virtual Real Estate Investing Club, is well-equipped in the real estate scenario and assists people develop their real estate investing business.
Zack Childress automated wholesaling systems