Calvin owned a Detroit rental property with a Federal IRS tax lien of $29,400 filed against his personal assets (including the property). The lien was from unpaid business taxes. He also had a small first mortgage of $18,000 remaining. The property was rented and in fair condition.
An IRS lien is a serious encumbrance — it attaches to all of the taxpayer's real property. Title companies won't close a sale without IRS lien resolution. However, IRS liens can be discharged from a specific property even while the underlying debt remains — allowing the sale to proceed. This requires specific IRS procedures.
7 Lakes Properties offered $87,000. We coordinated with a tax attorney to request an IRS Certificate of Discharge of Specific Property from Federal Tax Lien (IRS Form 14135). The IRS requires an application showing the property's value and the lien amount. With our offer in hand, the IRS approved the discharge.
IRS discharge application was filed on day 5 and approved on day 36 (IRS typically takes 30+ days). Closing occurred on day 41. From $87,000 proceeds: $29,400 IRS lien paid to IRS, $18,000 mortgage paid off, title/closing costs ~$2,400, Calvin received $37,200 net. Calvin was able to enter a payment plan for remaining IRS balance.
"I didn't think the IRS would ever let me sell. 7 Lakes Properties knew exactly what to do. I walked away with $37,000 and a clean property title."— Calvin B., Detroit MI
Get a free cash offer within 24 hours. Every situation is different — let's talk about yours.
