I.R.S. Tax Lien Subordination

It seems even the IRS is trying to help the housing market recover.  Here I am sharing an article from the weekly California Association of Realtors “Market Matters” blast.  Hoping you find it helpful. 

 This week’s C.A.R. Mortgage Update contains information about federal tax liens and lower mortgage rates.

 IRS to give break to distressed homeowners

The Internal Revenue Service (IRS) last week announced it is “subordinating” federal tax liens and allowing primary mortgage holders to take precedence when a mortgage is refinanced or the home is sold.  Homeowners with federal tax liens tied to their properties may find it difficult to refinance or sell.  The new IRS program allows homeowners to refinance or sell a home without first having to pay any federal tax liens.  The IRS is not forgiving the debt though, and homeowners must pay any back taxes owed.

To read the full story, please click here:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/12/17/BUL814PEF5.DTL

Mortgage rates at 37-year low
Rates on 30-year, fixed-rate mortgages dropped to 5.19 percent last week, the lowest level in 37 years, according to Freddie Mac. The lower rates have led to a surge in homeowners seeking to refinance.  However, homeowners who have defaulted on their mortgage payments or are “underwater”-owe more on their loan than their home is currently worth-may not be eligible for the new rates.

            To read the full story, please click here:

            http://www.mercurynews.com/realestatenews/ci_11262992