CNC -- Now selling home


Husband/Wife – Accepted CNC – Now have divorced. Primary residence is now being sold.

Will this trigger/nullify the CNC?


Was a notice of federal tax lien (NFTL) filed? If there is an NFTL, the IRS will be paid first from the proceeds of the sale. If there is enough equity, CNC will not be an issue as the tax will be paid.

Generally, the Total Positive Income is reviewed when the tax return is filed. If the amount is greater than a predetermined amount, the system will kick out the CNC:

You may have to submit new financials to obtain CNC again. The other consideration may be applying CNC based upon the prior CNC:

Hope this helps,