Of course this would happen!

[ashjt2011]

So I am down to just a few weeks before I planned on submitting my mortgage application (December 17th). I have fixed everything that needed to be fixed with collections and such and our middle scores are now hovering around 670. We are going with FHA. Everything is in perfect order for applying.

Until today... I recieved a letter from the IRS stating that my 2013 tax returns were incorrect in many ways having to do with school. I have the forms 1098-T and can track down my student interest forms to dispute this, which should bring the amount I owe down from 4k down to just a few hundred dollars which I can just pay on the spot. 

I have until December 2nd to get them the dispute documents and then it will take a few weeks for them to research and recorrect the stuff. How is this going to effect me on my mortgage application? Is the lender going to see that I recieved this letter and that I supposidly owe the IRS 4k?

THIS CANNOT BE HAPPENING! UGHHH!!!! 

[pizza1]

ugh!!! Im so sorry thats happening!! I hope someone with more experience with this will chime in.

[Anonymous]

The lender can't see the IRS letter but if they make you fill out a disclosure of liabilities you will need to list it. Not sure what your letter is about but if it's due to an education credit they want proof of what you paid and that it is higher then any grants/scholarships that you received. If you claimed a credit and tuition/books were fully covered by grants, scholarships, GI Bill, or other tuition assistance you would not be eligible for a credit.

Most letters are request for more information and if you submit what they need it will take care if it. If you have an H&R Block near you they can do a second look at your return for accuracy.

[Anonymous]

When you receive the CP2000 it doesn't automatically put a bal due on your account. The letter needs to be answered. Once it is determined what the amount that is actually owed then you it will go on your account.

[Anonymous]

When is rains it pours.   Sunny days after it all passes.  Good luck!

[ezdriver]

Respond to the IRS letter and get the matter settled before applying for a mortgage.

[Anonymous]

mortgage people cant see anything to do with the IRS unless its on your credit report or they have a lien against you.

[ezdriver]

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@Anonymous wrote:

mortgage people cant see anything to do with the IRS unless its on your credit report or they have a lien against you.

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Really? What about tax returns and transcripts? Just curious, what is the basis of your bold statement?