Lien Subordination occurs when the Department of Revenue allows its lien to take a lower priority than someone else's lien. Lien Subordination is made at the discretion of the Department of Revenue.
An instance where the Department of Revenue may allow its lien to take a lower priority to a "junior" lien is when the taxpayer is attempting to refinance a home mortgage to obtain a lower interest rate and the original mortgage has a superior position to the Department of Revenue lien.
The Department of Revenue may also subordinate a lien if doing so would speed collection of the tax. For example, a lien may be subordinated if doing so would allow a farmer to receive a loan to harvest a crop.
To be considered for Lien Subordination the taxpayer must complete and submit the Application for Certificate of Subordination of Kentucky Tax Lien (23K) to the Department of Revenue.
The Specific Lien Release and Lien Subordination program requires up to 10 business days to process the applications. If you require a lien release or subordination and have less than 10 days to the closing, your request may not be completed in time. All requests are processed in the order received. Please make sure that all applications are complete and required information is supplied. If the applications are not complete or require additional information, the processing time is slowed down. Your cooperation with this process is appreciated.
Inquire about Lien Subordination