There's a Lien On My Home, What Are My Options?

If you owe money to the government in the form of taxes, they may place a tax lien on your property. This means that if you sell or try to borrow against your property, the government has a legal claim of a part of the proceeds until they are paid in full.

This article will describe the steps you can take to . DoNotPay also offers a simple step-by-step procedure that can solve this dilemma for you quickly and easily.

What Is a Tax Lien?

A is a legal claim by the government against your property to secure the payment of taxes. The government will file a tax lien against your property if you neglect or fail to pay your taxes.

A tax lien gives the government a secured interest in your property, which can make it more difficult to sell or borrow against. Here are the most common types of tax liens:

Tax Lien Type	Description
Income Tax Lien	Also known as the IRS Lien or Federal Income Tax Lien, this lien is placed on your real estate or property for non-payment of income taxes. Usually, the lien is executed after a notice (or several) has been sent to you but no action has been seen from your end.
Property Tax Lien	This type of lien supersedes all other liens (if you are charged with more than one). Usually, the state offers property owners opportunities to pay the taxes (subject to each state’s laws), but if they don’t, the property will be sold to pay off the tax debts.
Support Liens (Child or Spouse)	A child or spousal support lien is when your spouse or the mother of your child applies for a lien on your real property. This gives her/him the right to hold your property until you have paid the support owed, refinanced your property (with the intent to pay support), or forced a lien sale on your property.
Judgment Lien	When a creditor decides to sue you for payment and wins the lawsuit, the court will execute a judgment lien which grants your creditor the right to take possession of your real or personal property instead of actual payment.
Materialman’s Lien	A type of judgment lien, this lien is incurred when the materials supplier or the contractor you hired to do work on your property has not been paid in full. When this happens, they can apply for and have a Materialman’s Lien placed on your real property. If they decide to sue you and win the lawsuit, they have the right to force a lien sale of your real property to get their payments.

If not acted upon, a tax lien can turn into a tax levy, which is a more aggressive approach, where your wages may be garnished or assets and bank accounts are seized.

What Impacts Does a Tax Lien Have on Credit?

If you have not paid your taxes and the IRS places a lien on your assets, it could lead to the following impacts:

A tax lien can have a major impact on your credit score and may make it difficult to obtain financing in the future.
You may not be able to purchase a home or refinance an existing loan. A tax lien will be uncovered in background checks that are done by banks when you are applying for a mortgage or refinancing a current home.
Your account is placed with the IRS' automated collection system. In some cases, taxpayers are assigned a revenue officer who may make in-person visits.
The tax lien can be converted into a tax levy, resulting in asset seizure.

How to Eliminate a Tax Lien

If you're , engaging with the IRS is the best way to try to resolve the issue. The agency may be willing to work with you to create a payment plan or accept a reduced amount. Here are some options the IRS may offer you to help clear the lien:

Negotiate a plan to pay off your debt. The IRS offers several payment plans, including an installment agreement. To apply, complete Form 9465 and submit it to the IRS.
If you can't afford to pay your debt in full, the IRS may be willing to accept a reduced amount. This is called a compromise offer. To make a compromise offer, you'll need to complete Form 656 and submit it to the IRS.
Seek help from a Tax Advocate. The Tax Advocate Service is an office within the IRS that helps taxpayers who have financial difficulties and are seeking help with resolving their tax payments or debts. A Tax Advocate will review the economic background of the person asking for help and will work with that person (or business) to solve their tax debts and issues. You may call this toll-free telephone number, 1-877-777-4778, to ask for Tax Advocate assistance..
If you feel the lien is unwarranted, you can file an appeal with the IRS to review your case.
While it's an option of last resort, declaring bankruptcy can eliminate your tax debt. However, there are many restrictions involved and it may not always work.
Contact DoNotPay and seek help with applying for relief from your tax liens.

Where to Get Help With a Tax Lien

When it comes to tax liens, it's important to get help from a qualified professional. A well-informed tax advisor can help you understand your options and work through the process. They can also provide guidance on how to negotiate with the IRS and reduce or even eliminate your tax lien.

A Taxpayer Advocate Service, which is an independent organization, can also help you navigate through the lien process. There is at least one local Taxpayer Advocate in each state who works independently of the IRS. If you qualify, you'll be assigned to an advocate who can assist you.

Let DoNotPay Help You Remove Your Tax Lien

Dealing with the IRS is never easy, especially if you are trying to remove a tax lien. But with DoNotPay's Remove My Lien product, the process can be considerably less frustrating and time-consuming.

Here's how to get started:

Search for Remove My Lien on DoNotPay.
Start DoNotPay’s Remove My Lien product.
Answer some questions about your specific lien and let DoNotPay help you craft a letter to your creditor to resolve the issue.

DoNotPay Can Help With Other Lien Issues

In addition to assisting you with an IRS tax lien, DoNotPay has solutions that can help you deal with other lien situations such as:

How to check if there is a lien on your house
How to fill out a lien release form
How to remove a tax lien from your credit report
How to remove a property lien
Find out if you have any liens against you
Learn about a car lien release
Selling a car with a lien
How to remove a state tax lien from the public record

What Else Can DoNotPay Do?

DoNotPay can save you time and money in many ways, including the following situations:

DoNotPay cuts through bureaucratic red tape and instantly solves many problems. Their innovative platform streamlines applications and gets the job done quickly without any time-consuming web searches, phone calls, or applications.