Lien Subordination
A lien is a legal right or interest that a creditor has in another’s property, lasting until the debt that it secures is paid or satisfied. A tax lien is a lien on property securing the tax debt and the lien does not relate specifically to a debt owed on that property. IRS Publication 784 relates to lien subordination. When the IRS subordinates a lien they are moving their claim or interest in the property to secondary or lesser position. Generally, the IRS will only subordinate the lien if the property is going to be sold or refinanced and money is going to be paid to the IRS.
