Real Estate Law
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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.
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