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DrakeLAW
DrakeLAW, Lawyer
Category: Real Estate Law
Satisfied Customers: 442
Experience:  Attorney at Drake Law Firm PLC
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TAXPAYER HAS HOME 625K HAS FIRST OF 400K RECORDED BEFORE A

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TAXPAYER HAS HOME 625K HAS FIRST OF 400K RECORDED BEFORE A LIEN OF 850K FROM IRS.IN CHAPTER 7CAN INTEREST AND PENALTY BE REMOVED AND WILL LIEN SUBORDINATE TO COMMISSION AND CLOSING BE PAID BEFORE THE LIEN. THEN DOES SHE OWE BALANCE.
Submitted: 9 months ago.
Category: Real Estate Law
Expert:  DrakeLAW replied 9 months ago.

Hello and welcome to JustAnswer, my name is ***** ***** I am an attorney. Please note:This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. This question and response may be viewed by other parties as noted in JA’s terms of service. By continuing, you confirm that you understand and agree to these terms. By continuing, you confirm that you understand and agree to these terms.

I will need a little more information to fully respond. But I can say that if the $400k was recorded first then the IRS lien will be subordinated to the first position lien. Since a lien was filed, the IRS debt is secured and chapter 7 will not do anything for the penalties or interest. Not sure what commission or closing you are referring to, please help me understand that. A chapter 13 would provide more help in this situation than a 7 but the IRS has new standards and they will work with the person in this situation and that is the best way to go for sure. Rather than pursue the sale of the real property, an agreement can be reached to pay them the equity in the house over time. They are quite good to work with now.

Thank you for your question. It has been my pleasure to assist you and I welcome you to request my assistance in any future legal questions you may have, by simply placing my name in the first sentence of your new question. Finally, please be so kind as to promptly rate this answer so that it may be closed in the system. I wish you the best in your endeavors! -Rich

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