A tricky one

[isohunter]

Hey guys I have a question of a somewhat delicate matter. My sister's husband fled the country because of IRS problems. We have lost all contact with him. She wants to sell her house but it is in both of their names. What avenues can she take to put the house completely in her name and try to put it on the market?

[Debbie]

This calls for an attorney!

I honestly do not know how any of us can help. I'm sorry!

[isohunter]

The plot has deifinitely thickened. I managed to pry a little more info from my embarrassed sister-in law (my wife's sister). Apparently the house was almost paid for when her husband did a cash out refi using, get this, a deed of trust. I still have to sort out the details but it looks like he is the trustee. She, not knowing any better and trusting him, signed off on it, and off he went, leaving her with the payments and their two kids.

This one definitely requires an attorney but I had a couple of ideas. Is it possible for me to buy the note from the lender in this situation? I would then foreclose on it. Would foreclosure wipe out any IRS issues?

I know my sister would take a credit hit but at least I could give her the money from the sale after deducting aquisition costs.

[DougBenn]

You will not wipe out an IRS lien. Those stay with the person. I am no attorney or tax expert but try to look into filing as an injured spouse. She could prove that she had no knowledge about what her husband did then she would be excused from the IRS debt.

[DougBenn]

Tim you beat me to the answer here. We had the same thought.