I am in the process of buying a short sale. Unfortunately for me there is a personal income tax lien on the property. The bank approved the short sale which makes no sense because this tax lien has been on the property for 3 months before the bank approved the short sale. I am questioning how the bank could approve the short sale with a tax lien on the title. Anyway, my lender believes that this can be cleared up by showing the IRS there is no value in the property that the IRS has the lien on. Has anyone had any experience in something like this? Is it still possible for this sale to go through?
There is a tax attorney on this problem. The bank approval specifically states the seller gets no money from this house sale.
Must be a lot of idiots on yahoo answers! I just found this.

http://activerain.com/blogsview/1278949/short-sale-removing-an-irs-tax-lien-from-a-property

We been at this short sale since Feb. The short sale negioater approved everything and submitted his approval to be signed off by his manager. That was 3 weeks ago and we are still waiting.