REALTORS HOW TO HANDLE HOMEBUYER WITH TAX LIENS

Page 1: Understanding the Situation
As a real estate agent, your primary goal is to help your clients find their dream homes and get them through the process of buying real estate. However, sometimes unexpected obstacles can arise. One of the most common issues your clients might face is a Notice of Federal Tax Lien from the IRS. If you’ve recently discovered that your client has received this notice, you may be concerned about how it will affect their ability to close on a property they’re so close to purchasing.
What Is a Federal Tax Lien?
A Notice of Federal Tax Lien is issued when a taxpayer fails to pay their federal tax debt. The IRS uses this lien to protect its interest in the taxpayer’s property, ensuring that it can claim the property if the debt is not paid. For buyers, this can create complications when applying for mortgages or closing on homes.