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Regular Contributor
breakthecycle
Posts: 114
Registered: ‎09-16-2008
0

I owe taxes will it be a problem?

I have signed a contract on a home been pre-approved for the Mortgage. I'm going FHA route. I do owe money for last years taxes. I pay monthly payments for the balance. Will that be a problem trying to get the FHA loan finalized? I have just begun the process, the home appraisal will be soon. 

Senior Contributor
mickie08
Posts: 3,299
Registered: ‎04-22-2008
0

Re: I owe taxes will it be a problem?

yes it will.  All past taxes have to either be paid, or in a payment arrangement that can be shown for the past 12 months.  SO if this was last years taxes, the payment arrangement will not do it.  You will have to pay the taxes.

Regular Contributor
breakthecycle
Posts: 114
Registered: ‎09-16-2008
0

Re: I owe taxes will it be a problem?

Thanks, I do have a payment arrangement with the IRS was scheduled to be done paying in November. They agreed to a certain amount a month. I didn't want this to come up in the middle of process and delay things.

Contributor
zerocredit
Posts: 79
Registered: ‎04-28-2009
0

Re: I owe taxes will it be a problem?

So far...I was preapproved in march 10, I am in a payment arrangement for several years taxes all lumped up in one arrangement.  It was never a lien or listed on my credit report.  My file has been before the underwriter and came back with conditions. The only thing  she mentiones was she would pull another 4506T at closing. One had been already previously pulled and they pulled for 2008 as it was right before April 2010 tax deadline. Keep in mind I am still paying on the taxes from 2008. But from my research when they pull the 4506t they can not see exactly what you owe or if you have paid, simply line items from your return, Now I owed a small amount for 2009 but placed an extension as although it was small I was hoping I could close in  time for the tax credit (I still have not its a short sale) So I was worried since the underwriter stated they would need a second 4506t at closing. I was worried because I had filed an extension that they could not pull my taxes. My LO stated as long as I have the proof the extension was accepted I should be fine.  (again that was the LO not underwriter statement) But I believe that they simply want me to sign another 4506t at closing for audit purposes not neccesarily to be pulled at closing. Matter fact I am going to look at my condition letter again to confirm the verbage.

 

Ok I went back to confirm, she wanted A. use the  4506t to confirm my income from the IRS probably due to the fact on my w2 and paystub  for my company list 2 different names. One is the DBA example Company ABC listed on w2 is DBA (doing business as) COMPANY XYZ on my paystub.

B. At closing have a signed and completed 4506t. (as I said probably for audit purpoes if need be in the future in case of default on loan ect.

I hope this helps.

 

Regular Contributor
breakthecycle
Posts: 114
Registered: ‎09-16-2008
0

Re: I owe taxes will it be a problem?

Thank You very much. This is actually the one issue that has me super anxious about the process. It does help me with the info you provided. Once again thanks.


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