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Who offers HELOC that have tax lien?

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I have tax lien from IRS and it's on installment auto pay for $20k, I talked to BOA, NFCU and Chase they will not do HELOC because of the lien, is there any other bank do?

Thanks

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Have you talked with your small, local bank that you should have some manner of business with?  Avoiding mega-banks often helps people tremendously...

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General lending practice would preclude any type of secured loan using your home as collateral with the presence of a lien.  Worst case scenario is that the house is seized and sold at auction for non-payment, selling at a depressed price that jeopardizes the lenders interest.

 

An internet search suggests that in the case of a standard mortgage, the IRS may be willing to subordinate their lien to the mortgage company's position, enabling the lender to proceed with a loan.  However, I doubt that option is available with a home equity loan, particularly if there already is a primary mortgage in place.

 

Another option to consider would be to finance repayment of the lien via another loan.   That would open up a HELOC option.  Obviously, the unsecured loan rate may be unattractive relative to the interest being charged by the IRS.

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15 hours ago, hdporter said:

General lending practice would preclude any type of secured loan using your home as collateral with the presence of a lien.  Worst case scenario is that the house is seized and sold at auction for non-payment, selling at a depressed price that jeopardizes the lenders interest.

 

An internet search suggests that in the case of a standard mortgage, the IRS may be willing to subordinate their lien to the mortgage company's position, enabling the lender to proceed with a loan.  However, I doubt that option is available with a home equity loan, particularly if there already is a primary mortgage in place.

 

Another option to consider would be to finance repayment of the lien via another loan.   That would open up a HELOC option.  Obviously, the unsecured loan rate may be unattractive relative to the interest being charged by the IRS.

HOWEVER, there ARE lenders who, if the loan would clear the amount of the lien, WILL underwrite a note, make the check out to the IRS AND even transmit the funds directly to the IRS precisely to preclude a borrower from absconding with the funds. 

 

That being said, I know from experience that a personal loan is not out of the realm with a small local lender...went that route when the IRS didn't like my math some years back.  Credit union wrote me the check and I carried it to the IRS office in Austin to make them Happy-Happy.  My life ALSO became a lot easier at the time.  Loan was for low five-figures.  This was also my edumacation about IRS certified letters not being forwarded, which subsequently contributed to my taxes being filed with the PO Box as the address of record...

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