Can one refinance a home that has a tax lien?

Thank you for your question.  I have several clients currently with the same problem.  If you have enough equity in your home to completely pay the delinquent taxes, the IRS will discharge the lien upon payment of the taxes out of the closing proceeds.  However, even if you do not have enough equity to pay the debt in full, the  IRS will subordinate their lien to the new mortgage if certain conditions are met.  (1) you must borrow as much as you can in the refinance to maximize the amount the IRS receives.  (2) The borrower cannot receive any money from the refinance (cash out).  (3) The IRS must be furnished with all relevant documents relating to the closing and make a determination that it is in the best interest of the IRS to take the money offered in exchange for subordinating their lien to the new mortgage.