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Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Filed 2011 2012 tax returns closing March26th

That sounds like a better plan as the first plan was in-between a rock and a hard place. I think getting your payment plan started with the IRS and closing after your 6th payment is made is a better approach. Make sure you talk with your LO to find out what all the qualifications are so that you can be certain that you will be approved in 6 months. You don't want to find out in 6 months that the payments had to be in place for 12 months. Best of luck. I hope it all works out for you. :-)
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
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vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

A new thought,,, If going conventional with 20% down does it matter if you just started a payment plan with IRS?

Heck with what i owe IRS and down i can combine the 2 into 20% down saving myself thousands in PMI payments.

 

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Filed 2011 2012 tax returns closing March26th

I think the requirements may be stricter with conventional loans. They may not want to see any outstanding debt owed to the IRS. Someone else may know for sure. Also your interest rate could be higher as it is based on credit score. I would talk to your LO about it too to see what he says.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
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vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

I wondered FHA check becuase they are backing the loan. I think its an FHA requirement they be paid.

I dont think its the lenders, why would they prevent buyers from giving them money.

If i was loaning money to someone i would want all debt they owed me paid too.

Conventional should look at IRS payment same as a car payment or credit card bill.

Just count against DTI. With 20% down my DTI looks great 30% housing 47% overall after adding $100 to IRS each month.

Would save me $150 a month in payment on the house. $100 a month to IRS leaves me an extra $50 a month for beer and cookies.

over 10 years that 20% down will save me more than i owe the IRS today. Someone out there has to have gone conventional and had IRS stop his party if they do run that check. I cant find it on this site so i might be correct in hoping for this. I tell ya its a lot easier working to have 20% down than to send to IRS for the right to house shop.

I have barely got any work dont this week. No motivation.

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012
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vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

We put an offer in on a shortsale. We offered market value so it should go quickly. Short sale quick im guessing 3-4 months.

I dont have time to be on payment plan, i will need the full $15,000 paid in full to IRS and 3% down comes to about $21,000 needed.

$26,000 is what i need for 20% down. 

That $150 a month i would save can then go to IRS each month.

Be like paying that off with free money.

 

 

 

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Filed 2011 2012 tax returns closing March26th

I would talk to a loan officer about the conventional route. If you are thinking of using all your money for a downpayment and then paying the IRS in full after you have saved the full amount from putting away $150 per month, you might want to rethink that plan. Everyday the balance owed to the IRS is not paid in full, they are adding penalties and interest. Those charges rack up quickly as they are based on the amount owed so you really want to pay off the IRS as soon as you can. The other thing that could happen is the IRS could file a tax lien. It is mandatory that you call and make payment arrangements as soon as you get that bill after filing your taxes.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
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vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

I aim to get a payment plan with IRS not pay it in full right away. Just pay them slowly till i die like a true American.

 

 

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012
Established Member
vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

I just filed my 2011 2012 returns i have not gotten any letters.

If it doesnt effect conventional loans i would get payment plan for 2011 and the 4 payment option for 2012.

It would just suck to have to pay that all off 1st instead of having 20% down. Becasue that will cost me $18,000 over next 10 years in added interest and PMI payments.

Thats why i wondered does Conventional run the CAIVRS whatever thing checking your IRS debt.

 

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012
New Contributor
slappymancuso
Posts: 167
Registered: ‎12-04-2012
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Re: Filed 2011 2012 tax returns closing March26th


vinylpalooza wrote:

I just filed my 2011 2012 returns i have not gotten any letters.

If it doesnt effect conventional loans i would get payment plan for 2011 and the 4 payment option for 2012.

It would just suck to have to pay that all off 1st instead of having 20% down. Becasue that will cost me $18,000 over next 10 years in added interest and PMI payments.

Thats why i wondered does Conventional run the CAIVRS whatever thing checking your IRS debt.

 


I think maybe you are confusing the quarterly payments with a payment plan.  By guidelines, you are supposed to pay the current year's taxes via quarterly payments.  The payments you make are towards the current year.  In other words, quarterly payments made this year would be towards 2013 which you would file next April.  As far as the IRS is concerned, your 2012 taxes will be considered due at the time of filing.  You can do a payment plan and everything still, but there will be penalties included for not doing the quarterly filings.

 

In regards to letters, the IRS probably won't even acknolwedge what you sent them for 8-12 weeks.  They will process any payments immediately, but even a check sent to them does not post to your account for a week or two.  They will take your filings, process them and then contact you in the aforementioned time frame to let you know if what your return indicated you owe is what they feel you actually owe.  It's all very convoluted as a self-employed individual which is why I finally broke down and decided to pay a CPA to deal with it!

Contributor
vlaw1084
Posts: 85
Registered: ‎04-09-2012
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Re: Filed 2011 2012 tax returns closing March26th

Is the underwriter going to make the IRS thing an issue?  As long as it is not showing up on your credit report as a lien that should not delay you in getting your loan.  I has the same situation in which I went tot he IRS and told them what I was doing.  They are not in place to try and impede you from buying a home, and yes they must be paid back. As long as you talk to them they will not put a lien even it it shows on your 4506-T that you owe.  I had a balance, we still were able to close and I negotiated a payment plan with the IRS. IT can be done.

 

J


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