Many people with credit problems also have IRS problems. And if you're a homeowner with IRS tax debt, you may have a big ugly tax lien against your home. If you have a tax lien on your home and you've tried to refinance, you know it's pretty much impossible. Until now.
The IRS has announced that its new policy of quickly subordinating its liens so that people can get refinances they need to stay in their homes. Subordinating doesn't mean the lien goes away; what it does is guaranty that in the event you default on your mortgage, your lender gets paid before the IRS does. And without a subordination agreement, your chances of getting approved for a refinance are akin to those of a snowball in the Mojave.
So, with expanded FHA guidelines, IRS cooperation, and lower rates than ever, anyone with the equity to refinance should be jumping on the bandwagon. You won't know what's possible until you try.
