I was in an installment agreement with the IRS for past tax debt. They had filed a judgement in 2005 and it showed up on my credit report. I have successfully paid off the entire debt (which was mostly penalty and interest UGGHHH!) last year. I understand that a bad debt can show up for up to 7 yrs from the time it "went bad" or was originally reported. The lien/judgement was filed 8 years ago. Even though my credit reports are showing them as "released" (and that took me writing several times for them to updat that) is there a clause somewhere in the FCRA that could justify me requesting the entire item be deleted from my credit reports? I believe that these liens are causing my score (FAKO I believe) to still be below 700 and I am trying to get a FICO of 740 by June. My FACO started out in the mid 500's 9 months ago and I have been using a credit repair service that has helped significantly. Scores (FACO) now in the 660-692 range. We are trying for a mortage. Tried in Nov when my FACOs showd mid 600's but a lender pull showed EQ 590 TU 690 and EX 610....they took the midrage of 610 and said I had to have 640 minimum so we were shot down. I don't want to do another pull/pre-qualify until June because we are doing a conventional and by then we should have the 20% saved up and I dont need a lot of "inquiries" especially since we won't be ready to do any formal applications until the summer anyway.
Any suggestions on what to do to get the scores in the 700 range? CC utilization is below 20% on all (0 bal on some and 10% utiliz on a few) One 30 day late from April 2012 (auto bill pay error but creditor not budging despite GW letter). Other "lates" were in 2008 when I was on medical leave for 3 months. Have sent GWs and only JC Penny removed the negative entry.
HELP!!!
Starting Score: 543 Ex May 2012
An unpaid lien can stay on indefinitely as the IRS can get a new one before the 10 years expires. A paid lien will drop either 7 years from the date it was paid/satisfied or 10 years from the date it was filed, whichever comes first. That's the bad news. The good news is that if you HAVE paid the lien or, with certain caveats, are in a payment plan, you may qualify to have the lien withdrawn under the "Fresh Start" program. See link for details and whether you will qualify.
If you do qualify, fill out form 12277 and in section 11 select "The taxpayer, or the Taxpayer Advocate acting on behalf of the taxpayer, believes withdrawal is in the best interest of the taxpayer and the government." In section 12 put that you'd like the lien withdrawn under the Fresh Start program and also request that notification of withdrawal be sent to you and to any CRA's who have the lien on their report. Include the proper addresses in an attached letter. WARNING: If the lien does not appear on all CR's do NOT include that/those CRA's bc you could have the unintended consequence of having that CRA add the lien to your CR and then have to fight them to get it removed. From what I've read, the letter from the IRS may be all that's needed to get them removed but in other cases you may also need to follow up yourself with the CRAs which is why it is important to get the withdrawal notice yourself.
Here's a video on the process.
Go here to determine where to send it.
Good luck!
Well guys
Great news! Thanks to electra for posting the information on the Fresh Start Program by the IRS, I filled out the form back in January and last week, I got the approval for withdrawal of notice of liens! This forum and its members have been a Godsend.
I spent the better part of last week making copies of the form the IRS sent along with the cover letter and sending copies of them to all the credit reporting agencies....
I am hoping that once the bureaus have checked the documents I will see a jump of at least 40 to 50 points in my score. Also, made the final payment on all credit cards this past week as well!! 
Wow... great work!
Starting Score: 504
Current Score: EQ FICO 819, TU08 775, EX "Who Knows?" Quizzle 756
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Woot woot!!! Congrats!! That's AWESOME!! Come back and let us know how the removal process goes and once they are gone how your scores are impacted. 
I sent 2 of mine in exactly one month ago today (or rather they received them then) and the 3rd about 3 weeks ago. Still haven't heard back on any of them yet.
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