IRS Lein

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I am currently working on a short sale. The first is protected and I am not attempting any kind of a short with them (waist of time). I have an offer in to the second offering them 1k on a 35k note. I have talked to the loss mitigation specialist handling this case, his senior loss mitigation specialist, and the manager above both of them. They have been great to work with, but at this time they will not consider my offer because of an IRS tax lien that they claim is in third position. Can this be possible? If so, is there any advise of how and where to go next with this? Note: even with paying off the IRS, the first, and giving 1k to the second, this is safely a 20k deal. Thanks Jeremy

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