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Can't get home equity loan with tax lien.

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Anonymous
Not applicable

Re: Can't get home equity loan with tax lien.


@masscredit wrote:

@Anonymous wrote:

I can't do that. The house is actually in our family. My father still lives in it. One of the reasons he put it in my name now was so that I could borrow and pay my lien. And in case he ever goes into a nursing home down the road. So its legally mine. But it's really still my dads.
I actually just took a loan from prosper and paid my back tax money today. They told me it would take a week before the lien is  released.


 

Sounds like you were able to save some money if you paid those taxes off by Oct 31st. That was the last day of the state's Tax Amnesty program.  

 

Please post what happens from here. I paid off all of my MA state taxes during that program and am trying to get two liens removed from my credit reports. The person that was handling my file told me that they mark the liens as paid but they don't remove them from the reports. I told her that I would do some leg work and try to make it happen. She said she could provide me with a letter stating that liens were satisifed but that's it. I'll post anything that I find in this thread.  Maybe one of us will come up with something to get these off of our reports.

 


     I did pay in time. Oct. 31st at 10AM to be exact. I have a membership to experian and have pulled my report every day to see if it shows as paid. So far nothing has changed. Not that I really thought it would happen this quick. The 15000 I owed was from 2001 and 2003. The lien was from 2003 which was just about 10,000. Thats the only one I paid even though I borrowed 10,500 (the full amnesty balance if i paid both). I wanted to keep some money in the bank. I will have money to pay the other one this spring. I'll kick myself if they put a new lien for the other one before that. 

     I paid 6,700 saving over 3000. I think like 3200 or something. But heres the kicker. I checked my account that morning and the money from Prosper had not been deposited. So I used two credit cards. Obviously I paid them off with the loan money but they charged me a 2.49% convenience fee for using a credit card which was 160$. I checked my bank account at noon and the money was deposited.

Message 11 of 42
masscredit
Valued Contributor

Re: Can't get home equity loan with tax lien.

We'll probably see a news story that tells us how much money MA collected through that program. 

 

I'm getting all of my info together to start working on having my liens removed. There is a difference between having a lien released and having it removed.  I'm not finding much to be able to do that but I did come across this on the MA DOR site -

 

http://www.mass.gov/dor/businesses/help-and-resources/legal-library/regulations/62c-00-state-tax-adm...

 

 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

SDFCU Secured - $5000 / TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 12 of 42
coterotie
Established Contributor

Re: Can't get home equity loan with tax lien.

Tax liens and judgements stay on the report for 10 years whether paid or not.  From the documentation you posted, you will need the state to record the release and keep following up with them.  The credit bureaus do an abysmal job of updating liens and judgements to "paid."  Again, you will have to keep calling and using the error reporting feature to get it done.  Took me 2 years to get Equifax to correctly non-report a paid lien that was past the 10 year mark.  Remember the 10 years starts when the lien or judgment is recorded, NOT when paid.

 

As to how banks treat them, liens are a hard hit and pretty much a big stop sign to them lending money.  However, a paid lien has a steadily diminishing impact on your score and you should be able to get credit at decent rates, particularly if the rest of the file is clean.  Some states have a policy as does the IRS of completely removing (vacating) the lien.  So be sure to check the laws and policies of your state.

 


@masscredit wrote:

We'll probably see a news story that tells us how much money MA collected through that program. 

 

I'm getting all of my info together to start working on having my liens removed. There is a difference between having a lien released and having it removed.  I'm not finding much to be able to do that but I did come across this on the MA DOR site -

 

http://www.mass.gov/dor/businesses/help-and-resources/legal-library/regulations/62c-00-state-tax-adm...

 

 


 

Message 13 of 42
masscredit
Valued Contributor

Re: Can't get home equity loan with tax lien.

Are there any benefits to having the liens paid when it comes to scores?  Lenders would probably be happy to see that if they do a manual review.

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

SDFCU Secured - $5000 / TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 14 of 42
Anonymous
Not applicable

Re: Can't get home equity loan with tax lien.


@coterotie wrote:

Tax liens and judgements stay on the report for 10 years whether paid or not.  From the documentation you posted, you will need the state to record the release and keep following up with them.  The credit bureaus do an abysmal job of updating liens and judgements to "paid."  Again, you will have to keep calling and using the error reporting feature to get it done.  Took me 2 years to get Equifax to correctly non-report a paid lien that was past the 10 year mark.  Remember the 10 years starts when the lien or judgment is recorded, NOT when paid.

As to how banks treat them, liens are a hard hit and pretty much a big stop sign to them lending money.  However, a paid lien has a steadily diminishing impact on your score and you should be able to get credit at decent rates, particularly if the rest of the file is clean.  Some states have a policy as does the IRS of completely removing (vacating) the lien.  So be sure to check the laws and policies of your state.  

 




The only judgment that stays for 10 years is chapter 7. At least from what I've been able to pull up and I've researched this quite a bit. Judgments from being sued fall off after seven whether paid or not. And tax liens will remain forever if not paid. They then fall off seven years after the day they are paid.

Message 15 of 42
masscredit
Valued Contributor

Re: Can't get home equity loan with tax lien.


@Anonymous wrote:


The only judgment that stays for 10 years is chapter 7. At least from what I've been able to pull up and I've researched this quite a bit. Judgments from being sued fall off after seven whether paid or not. And tax liens will remain forever if not paid. They then fall off seven years after the day they are paid.


I've mainly been researching my state (MA) but I believe I've read that some people have been sucessful in having paid liens removed. Maybe they were IRS liens after they were paid or a payment arrangement has been made? It seems like it's easier to get things done with the IRS than through the states. 

 

And with the IRS, back taxes become non-collectible after 10 years. The liens shouldn't be enforceable then?

 

 

 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

SDFCU Secured - $5000 / TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 16 of 42
coterotie
Established Contributor

Re: Can't get home equity loan with tax lien.

You are correct.  I knew seven but typed 10.

 

Thanks,


@Anonymous wrote:

@coterotie wrote:

Tax liens and judgements stay on the report for 10 years whether paid or not.  From the documentation you posted, you will need the state to record the release and keep following up with them.  The credit bureaus do an abysmal job of updating liens and judgements to "paid."  Again, you will have to keep calling and using the error reporting feature to get it done.  Took me 2 years to get Equifax to correctly non-report a paid lien that was past the 10 year mark.  Remember the 10 years starts when the lien or judgment is recorded, NOT when paid.

As to how banks treat them, liens are a hard hit and pretty much a big stop sign to them lending money.  However, a paid lien has a steadily diminishing impact on your score and you should be able to get credit at decent rates, particularly if the rest of the file is clean.  Some states have a policy as does the IRS of completely removing (vacating) the lien.  So be sure to check the laws and policies of your state.  

 




The only judgment that stays for 10 years is chapter 7. At least from what I've been able to pull up and I've researched this quite a bit. Judgments from being sued fall off after seven whether paid or not. And tax liens will remain forever if not paid. They then fall off seven years after the day they are paid.


 

Message 17 of 42
masscredit
Valued Contributor

Re: Can't get home equity loan with tax lien.

Chief, Collections Bureau

Massachusetts Department of Revenue
P.O. Box 7021
Boston, MA 02204
For further information, call (617) 887-6400.

 

I called the office above to discuss my taxes today. I was told that they will be running the amnesty payments today or next week. So all of that will be applied to the balances that were owed, If there was a tax lien, they will send us copies of the lien release. He told me to forward those copies to each of the credit bureaus. 

 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

SDFCU Secured - $5000 / TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 18 of 42
Anonymous
Not applicable

Re: Can't get home equity loan with tax lien.

Post on here once you get something. I will as well. When did you pay yours? I paid on the very last day
Message 19 of 42
masscredit
Valued Contributor

Re: Can't get home equity loan with tax lien.

I paid mine around the second week of September. There was another tax bill for MA but that didn't have a lien attached. 

 

I haven't received any info from DOR yet. I'll give them a few more days and call around the middle of the week if I don't hear anything. Actually, I did hear one thing this past week. There was a $100. overpayment because I had a payement agreement with them. I paid the first bill the day before the automatic withdrawal so it wasn't stopped in time. So what happened to my $100? It was sent to the IRS because I owe them money. Wasn't to happy about that but nothing I can do.

 

Have you heard anything about yours? 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

SDFCU Secured - $5000 / TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 20 of 42
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