Refinance Florida Tax Liens – Refinance Florida Mechanic’s Liens!

Refinance Florida Mechanic’s and Liens Tax Liens!

In any state, Florida mortgage or/and Florida mechanic’s liens on your Florida home can lead to foreclosure. The process of that Florida foreclosure as a result of a Florida Mechanic’s lien though can vary from state to state. Florida, for example, has one of the nation’s fastest foreclosure processes for Mechanic’s liens. Florida Bad Credit Mortgage lenders may help you pay Florida contractors who place mechanic’s liens on your Florida home. 

Hot Florida Bad Credit Mortgage Topics Include:

Florida’s Mechanic’s Lien Refinance Overview
With enough equity, a Florida mechanic’s liens can be refinanced in your current Florida mortgage. Florida’s construction and contractor lien and Mechanics lien laws are complex and difficult to understand. Due to the impact that a lien transfer can have on a Florida contractor’s ability to execute their lien rights, it is highly recommended to seek the help of an experienced Florida construction lawyer when dealing with lien transfers and Florida mechanics liens. In General Florida, construction lien laws provide a level of financial protection for lienors, or parties who supply contract labor, materials, or work for the improvement of existing Florida buildings. Florida contractors and lien holders who are not properly compensated during a construction project are entitled to place a lien on the property for the value of the work, labor, or materials supplied. The Florida lien will not be removed until the debt is paid in full. 

Florida Mechanic’s Lien Refinance 
In order to foreclose on your property, a creditor must have previously filed a lien on your home. A lien is a right of ownership. Your Florida mortgage lender will need to pay off the Florida mechanic’s lien when refinancing your current Florida mortgage. The new Florida mortgage lien on the home to secure the debt. Contractors and other construction workers also are able to place liens on your home for unpaid construction bills. These are mechanic’s liens. Mechanic’s liens have a lower priority than mortgage liens, so the proceeds from the sale of a foreclosed property will pay the mortgage debt before the construction bills.

Florida’s Mechanic’s Liens Requirements

According to Florida law, contractors have the right to enforce payment for unpaid services, labor and materials by establishing a property lien on your home. These “lienors” could be contractors, subcontractors, sub-subcontractors, laborers or material suppliers. In many states, there are certain limits on an owner’s liability for mechanic’s liens, but in Florida, the law actually expands the owner’s liability to protect the lienor. That said, a construction worker filing a lien on your home first must have issued you a preliminary notice at the start of the job. Additionally, the mechanic’s lien must be filed within 90 days of completing the work.

Florida Mortgage Foreclosure Basics

Florida is a mortgage state, meaning that as the owner of a property, you hold the title. During a foreclosure, property owners in mortgage states are required to go to court to settle the issue with their lender. This court involvement lengthens the foreclosure time period, and in Florida, it can make the process take five to seven months (or even longer). In some states, there is a redemption period that allows foreclosed property owners to take back the title of their home if they can pay all outstanding debts. In Florida, however, there is no such redemption period.

Florida Mortgage Foreclosure Process

In order to foreclose on your home in Florida, your mortgage lender first has to sue you in court and receive an order of foreclosure. The process begins when the lender issues a notice of default. Once you receive the notice of default, you’ll have a short time period in which to respond. If you do nothing, the foreclosure will progress and, if awarded a foreclosure, the creditor then has the right to sell your property to settle the lien. Mortgage liens have a lower priority than property tax liens, however, so the mortgage will only be settled after unpaid property taxes have been satisfied.

What is a Florida lien? noun: lien; plural noun: liens

  1. a lien is a  right to keep possession of property belonging to another person until a debt owed by that person is discharged.

    How do Florida mechanics liens work? 

To get a mechanic’s lien, state law will usually require the subcontractor or supplier to do the following:

  • A Florida subcontractor/ or Florida suppliers who does not contract directly with the Florida homeowner must provide notice to the homeowner of what is being contributed (e.g., supplying the bathtub), typically within 20-30 days of contribution.
  • If the subcontractor/supplier isn’t paid, they must file a “claim of mechanic’s lien” in the county where the property is located.
  • The subcontractor/supplier then has typically two to six months to work out a solution with the property owner or file a lawsuit for a Florida Mechanics Lien.

Understanding a Florida Tax Lien

A Florida federal tax liens is the government’s legal claim against your property when you neglect or fail to pay a Florida tax debt. The Florida Tax lien protects the government’s interest in all your Florida property, including Florida real estate, Florida personal property and Florida financial assets. A Florida federal tax lien exists after:

The IRS:

  • Puts your balance due on the books (assesses your liability);
  • Sends you a bill that explains how much you owe (Notice and Demand for Payment); and


  • Neglect or refuse to fully pay the debt in time.

The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a Florida legal right to your property. For more information, refer to Publication 594, The IRS Collection Process (PDF) .

How to Get Rid of a Florida Tax Lien

Paying your tax debt – in full – is the best way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt.

When conditions are in the best interest of both the government and the taxpayer, other options for reducing the impact of a lien exist.

Discharge of Florida property

A “discharge” removes the lien from specific property. There are several Internal Revenue Code (IRC) provisions that determine eligibility. For more information, refer to Publication 783, Instructions on How to Apply for Certificate of Discharge From Federal Tax Lien (PDF) and the video Selling or Refinancing when there is an IRS Lien.

Florida Mortgage or Loan Subordination

“Subordination” does not remove the lien, but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage. To determine eligibility, refer to Publication 784, Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien (PDF) and the video Selling or Refinancing when there is an IRS Lien.

Florida Withdrawal

A “withdrawal” removes the public Notice of Florida Federal Tax Lien and assures that the IRS is not competing with other Florida creditors for your property; however, you are still liable for the amount due. For eligibility, refer to Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (Internal Revenue Code Section 6323(j)) (PDF) and the video Lien Notice Withdrawal.

Two additional Withdrawal options resulted from the Commissioner’s 2011 Fresh Start initiative.

One option may allow withdrawal of your Notice of Federal Tax Lien after the lien’s release. General eligibility includes:

Your tax liability has been satisfied and your lien has been released; and also:

  • You are in compliance for the past three years in filing – all individual returns, business returns, and information returns;
  • You are current on your estimated tax payments and federal tax deposits, as applicable.

The other option may allow withdrawal of your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement. General eligibility includes:

  • You are a qualifying taxpayer (i.e. individuals, businesses with income tax liability only, and out of business entities with any type of tax debt)
  • You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting withdrawal of the Notice of Federal Tax Lien)
  • Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
  • You are in full compliance with other filing and payment requirements
  • You have made three consecutive direct debit payments
  • You can’t have defaulted on your current, or any previous, Direct Debit Installment agreement.

How a Florida Tax Lien Affects You

  • Assets — A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.
  • Credit — Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.
  • Business — The lien attaches to all business property and to all rights to business property, including accounts receivable.
  • Bankruptcy — If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.

How To Avoid a Florida Lien

You can avoid a federal tax lien by simply filing and paying all your taxes in full and on time. If you can’t file or pay on time, don’t ignore the IRS Tax Lien letters or correspondence you get from the IRS. If you can’t pay the full amount you owe, payment options are available to help you settle your IRS tax lien debt over time.

Florida Lien vs. Florida Levy

A lien is not a levy. A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.

Florida Refinance IRS Help Resources

Florida Centralized Lien Operation  — To resolve basic and routine lien issues: verify a lien, request lien payoff amount, or release a lien.

Florida Collection Advisory Group — For all complex lien issues, including discharge, subordination, subrogation or withdrawal; find contact information for your local advisory office in Publication 4235, Collection Advisory Group Addresses (PDF).

Office of Appeals — Under certain circumstances you may be able to appeal the filing of a Notice of Federal Tax Lien. For more information, see Publication 1660, Collection Appeal Rights (PDF).


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