The feds but a restitution lien on our home. Prior to the lien, I had put the home in my name. I would like to sell the home. How much can the feds take of the equity built up. My husband and I have divorced and the mortgage payment is too much and I can not refinance. Can I sell this home and receive a share of the equity (the total equity at sale might be 150K - the restitution is $300k), we have been in the same home since 1985 - and I love my home, but now it is just like a rental to me, unless I knew that any equity would be shared between the Fed and me. Thank you.
Country relating to Question: United States
Good afternoon. Unfortunately, the Feds will be entitled to all the equity up to the amount owed the government. There would be no right for you to share the equity with them...they'll simply take it all. Liens have to be satisfied in full before the selling owner is entitled to any proceeds from a sale. I'm sorry!
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So even though it is a community property state and we were married almost 30 years, I am jointly responsbile for his debt. I mean between the attorney bills and the restitution, I am pretty much broke and at my age that,s upsetting. I have worked for most of our marriage with the last twelve years full time and contributed to the household bills. Are you absolutely sure they can take all the equity? Paying the mortgage now means I am renting essentially because any build up in additional equity will go to his restitution balance. Yes?
As long as his name was on the deed, the property is at risk. I totally understand your frustration, but unfortunately, that's the way these government liens work.
Texas lawyer for 32 years; Also RE developer
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