IRS payment plan + mortgage question...

[oneilldn]

Hello all, need some advise here;

I'll be applying for a mortgage really soon, I made a mistake in my taxes back in 2008 and ended up owing, I"m currently on a payment plan with IRS & my state revenue office for the last 6-7 months. The question is, when I apply, should I disclose this? Do I have to disclose? I don't want to brake the law, but I don't wat to disclose if I don't have to. And, if I have to disclose these two payments, will they still appove me with only a 6 months history payment plan? My credit is good and show no late payments, every debit is paid off except one small student loan.

[Anonymous]

to answer your questions..

yes you have to disclose it.

If you do not they will find out when they request transcripts and run you through the gov't system

you will not be allowed to buy unless the IRS is paid off or you have been in a formal payment agreement and have 12 months of on time monthly payments made to them.

Not what you wanted to hear, but that is where you stand.

[oneilldn]

You right, that's not what I wanted to hear, but at the same time I don't want to break the law, I want to do things the right way. Now, I have heard that if your credit is good sometimes they will approve someone with less than 12 months on the payment plan, any truth to this?  I have waited a long time to buy my first home, so waiting a few more months is not really a big deal,but, I'll like to do it now....

[Anonymous]

With the IRS, they want it paid, so accepting a payment plan is already a concession.  The 12 months rule will almost certainly be used.  If it was just some collection account they would probably be more forgiving on the timeframe.

[tmjacks]

My lender's requirement is at least 6 months of on time payments.

[Anonymous]

I am surprised by that.  I have always seen IRS plans requiring a full year.  Is that from the underwriter or the LO?