01-03-2012 10:40 AM
Me and my husband are schedued to close on our house Jan 27th.2012, today we get a notice about a Federal Tax lien that is on my credit fie that I have been paying on for 6 years,the balance is $ 7226.00. My question is will this affect me getting approved for my VA loan if the total is not paid by closing ? My credit scores are all above the 620 needed to quailfy for the loan although my husband middle score is around 604.
We only have enough to cover closing and nothing extra.
01-03-2012 02:08 PM
01-03-2012 02:19 PM
Once you get that you can also ask your LO to do a rapid rescore
01-03-2012 03:06 PM
i have seen this before. some time a problem, some times not.
might be ok with an ontime payment history.
will be seen as any other debt.
ask your lender..... they may interpret this diffferently.
09-05-2012 02:57 PM
09-05-2012 07:57 PM
engineer90 wrote:I Qualify for a VA home loan but my Tax Lien has stopped me from getting a mortgage.I have a Tax Lien for $19K. I have gone to the IRS and made a payment plan.This is my 2nd month to make the payment.I make enough money to buy a house but the tax lien stops every mortgage company to even talk to me about getting financed.Do you know of a mortgage company that I can get financed?
maybe. if you set up your payment plan on auto draft, they can release the lien.
Then it will just be a payment plan on back taxes... no lien.
does anyone have a link to the post Shane posted about this?
09-06-2012 04:02 PM
Yes! the above statement is true.YOU can get the lien released, but I would enlist the help of your local tax advocate and tell them what you are trying to do. They will receptive if you are upfront with them. Your tax advocate is there to help you, it can be done. I had a friend in the same situation and they released the lien and agreed to pursue second position if he defaulted on the loan. It can be done.
09-13-2012 08:22 PM - edited 09-13-2012 08:22 PM
Thank you both for replying to my post.
vlaw1084 when you stated tax advocate are you talking about the customer service person at the IRS office?
How long did it take for the IRS to release your friend lien?
I made a payment plan and I have made 2 payments by money order but the auto draft starts in Oct 2012. I am wondering how long I will have to wait to get this lien released after the auto draft starts.
I would appreciate if someone has any links that I can read of a tax lien release.
09-14-2012 05:14 AM
I'm closing today with an FHA loan. My tax liens were released sometime last year after I entered into a payment arrangement with the IRS. To close on this loan I needed to have 12 months of on time payment information but didn't need to have any liens released. You may need to get the IRS to subordinate their lien and the form required to do so says it takes at least 45 days. Look at publication 784 on their website. If you've dealt with them, you know 45 days to them is 6 months to us. Good luck!! The last two weeks have been the most stressful I've ever been through but I think it is all going to be worth it!!
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.