At a Crossroads

[titanofold]

Okay, so we're at a bit of a crossroads here. We have a choice of what to pay off: Her CCs or my IRS tax lien.

We're going for an FHA mortgage for at least $123,000.

She makes $32,000 annually. She has $52,509.85 in SLs, but only has to repay $25,591.16 as Sallie Mae is going to hold out for the county to pay for it. (She's a social worker.) She has an auto loan on her report, but her father pays for it. She has $5,300 in CC debt. Her credit is pristine. She's at a 720 accoding to Capital One. So, I'm sure once we get her CC debt closer to optimum she'll be in the excellent range. On paper, she has to pay at least $727.88. If we were to eliminate the CC debts and prove her father is paying the car, that'd be more like $255.88.

Me, on the other hand, am not so great. I have good payments for 1 year. A 60-day January 2013, and some 120-days in February 2011. Last lender pull put me at a 630. I had a CO that'll be coming off, and if I get the lien withdrawn I'm sure I'll be well over 640. My tax lien is about $5,300.

I'm under contract to purchase by April, and since the IRS and the Government decided to be stupid last October, my DDIA isn't going to start until next week, which means I need to pay off the debt to get the lien withdrawn. (My plan was to have it withdrawn before this month was out, and I'm still waiting for the CO to come of my Experian.) Now I'm reading the experience of others where it takes 60-days for the withdrawal to be approved and then another 60-days to get it removed from the CRs.

We haven't been able to get a hold of the LO that we're going to be working with just yet, which is why I'm asking here. Which course of action should we take?

[titanofold]

We talked to our LO. He said my fiancée could actually get the mortgage on her own if she gets the CCs paid down to the optimal.

He said with my having the tax lien and the time frame that we're looking to close, it'd be a bit iffy as to whether or not the lien would be updated on the reports and/or removed in time. Especially with the IRS still having a backlog from October, the recent stories I've heard of it taking about 4 months from filing for withdrawal to it actually being withdrawn.

So, we're going to pay her CCs.

While it's a bit sucky that I won't get to benefit from the mortgage, I'd rather us have the house. There's still the surrounding land, too. So maybe in a year or so we'll refinance and snatch those up.

[Darrell82]

Good luck on your Approval and everything... Looks like you got a good game plan. 

[titanofold]

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@Darrell82 wrote:

Good luck on your Approval and everything... Looks like you got a good game plan. 

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Thanks!