Working on resolving the tax lien- not the easiest thing to do. Part of the problem is that the ftb (calif) doesn’t update the tax lien so it looks like I’ve made NO payments when in reality, they’ve been garnishing my wages on and off since 2003. I won’t even get into the exorbitant (and erroneous) late, interest, penalty, etc. charges.
penfed (and other ‘good’ creditors) just see the full amount of the tax lien and it’s a mess to deal w/. PIF is currently not an option not to mention the amt. claimed owed is wrong. Tax liens are a bit of a unique beast b/c the reporting clock is extended if you pay. currently, CRAs say the unpaid tax lien will drop in 2013. if I pay it, it will be extended by 7 yrs from the date it’s paid off. I’ve heard of people paying tax liens and having them on their reports for 15-20+ yrs. I’ve heard of people NOT paying tax liens and having them DROP after 7 yrs. In hindsight, BK probably would’ve been a better option. @ this pt, the tax lien’s my biggest and most troubling baddie fico wise. however, even w/it, I’ve been able to rise from mid-high 500s to mid-high 600s in the past yr…and I’m hoping I’ll rise more once my latest round of ‘repairing’ efforts kicks in and some of my ccs age more.
I’m in w/BA through the 99/500 and BA said if I keep using my current ccs as I am, that they’ll graduate me in 9-10 mos. and I’ll get at least a 500 cl, so that will be my first 4 digit ‘prime’ unsecured cc. Us bank seems willing to work w/me through their secured cc and said it will graduate in 12-13 mos. by then, I can dump first premier and my ficos should be ok.
Both penfed reps were surprised that I was denied for their secured cc, so perhaps *some* applicants w/tax liens and/or other public records are given ccs through penfed?
Jm, I know the difference between debt you owe and debt that shows up on your cr. I also know that there are SOLs for certain things and that if someone sues you for that, you can raise SOL (among other things) as a defense. I also know that despite the common view that taxes NEVER go away, that is NOT true under certain situations. I also know that our govt makes ERRORS in deciding what you owe and are SLOW to fix those errors (if they ever fix them). I also know that even if you make ANY payments on tax liens (through say wage garnishments), the tax agency does NOT update the lien records and so your lien looks like it was NEVER paid even if you have made SOME payments.
I also know that if I PAID the tax lien NOW, that would EXTEND the time it remains on my CRs which may mean that rather than dropping off in 10 yrs (which is quite a long time anyway), the time it remains on your CR may be extended up to 17-22 yrs- and frankly, I can’t see the advantage of that. I also know that no matter how hard/long people TRY to resolve tax liens, govt agencies are NOT exactly the easiest to deal w/. Trust me, I’ve discussed this matter w/several esqs., some of whom were former IRS agents.
As I said, I would like to resolve this tax lien (and have been trying to for 5 years), but I am not going to put myself in the position where the lien ‘extends itself’ on my CR for another 7-12 years. At this point, I am a bit ‘stuck’ on progress through no fault of my own. People think CAS and cc cos. are a nightmare, but they are a walk in the park compared to tax issues.