If the Internal Revenue Service or IRS filed a tax lien against your property because of unpaid taxes, and you have a difficult time getting it removed, it does not mean your house cannot be refinanced or sold later on. The IRS as a matter of fact, is often interested in helping a delinquent taxpayer’s financial situation. This in turn helps increase your ability to pay tax debt. You might be entitled for tax lien subordination if refinancing your property allows you to pay a lump sum to the government, or increase monthly disposable income.
If the IRS accepts your request for tax lien subordination, they would issue a certificate of subordination of federal tax lien. This document from the IRS permits a potential creditor to move ahead in the creditor position. However, only for the property named on the certificate of subordination and whose name you listed in your request.