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Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013
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Re: Removing satisfied tax liens from credit reports

     I just completed the lien removal process a couple weeks ago. I got a federal lien removed from all 3 reports and my scores jumped from 35 to 102 points in one month. The process took me 9 weeks. Part of that was because I initially sent form 12277 to the wrong address and got it back a month later and had to resend. Once I got  my form 10916 from the irs which meant that they had filed for withdrawl with the court that they initially filed the lien against me in (cook county, il. in my case), I contacted the CRAs. In my case I had requested with form 12277 that the IRS write letters to the CRAs and they did. The IRS sent me copies of the letters to the CRAs but that didn't get the item s deleted. I ended up filing disputes and then calling all 3 CRAs to get the lien removied. EQ initially verified the lien and wasn't going to delete it. Basically the process takes some persistance and determination but you can get a federal lien removed as I did.

   As far as state liens are concerned, they are a bit more difficult. It depends on what state you are in and what the state laws are. In general terms however, you need to get in front of a judge in the court that filed the initial lien against you. You need to file a motion to vacate once the liens are paid off and when you go before the judge you need to convince the judge to vacate the lien. This is easier said than done. Most judges will not vacate a lien just because you paid it. It seems that if your initial lien was filed in New York City you have an advantage. New York law provides for liens to be removed in 5 years (most other places it takes 7) and there is empirical evidence that NYC judges have been more sympathetic to motions to vacate. 

     If you are going to go before a judge have a strategy. Have compelling reasons. For example, maybe you can get a better job and you have 5 kids to feed or something like that. If you want to improve your chances of success at vacating, hire a lawyer...

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Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013
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Re: Removing satisfied tax liens from credit reports

   If you get a state lien vacated or withdrawn then the CRAs have to remove it. If it is no longer in court records then they cannot verify it. The problem that you will come across is CRAs don't acutally verify most things the way they should. What they do is they run things through E-Oscar which is an electronic verification database which is almost always inaccurate when it comes to withdrawn or vacated public records. So you have to approach the CRAs and ask them to confirm how they verified info or speak with an operator in person and try and explain the situation because E-Oscar is likely to get it wrong. If you can successfully get a record removed at the source (the court where it was filed) the CRAs have to remove it. 

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Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013
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Re: Removing satisfied tax liens from credit reports

   this video may be helpful for federal liens..

 

 

http://www.irsvideos.gov/Individual/IRSLiens/LienNoticeWithdrawal

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stillirise
Posts: 96
Registered: ‎01-08-2012
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Re: Removing satisfied tax liens from credit reports

Thank goodness they finally took the federal tax lien off along with 2 negative records that were 7 yrs old. Now, they are trying to explain to me on the phone why my score dropped 50 points! They are trying to tell me its because the acct is still in dispute. That makes no sense considering the accts were deleted. Has anyone heard of this? Should I just give it more time? I almost feel that dropping the score so drastically was to keep me in a trap I can't ever escape. How does a score go from 698 to 649 after removing seriously negative info?:smileysad:


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stillirise
Posts: 96
Registered: ‎01-08-2012
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Re: Removing satisfied tax liens from credit reports

Electra

I filed a complaint via that link. I wasn't sure what would happen with it so I continued to file my disputes in the meantime. Finally, someone in the Equifax dispute dept asked me again to fax my withdrawal form. The Federal lien was finally removed but...My score at Equifax dropped from 698 to 649 overnight. The same time the lien was removed so was two other negative accts I'd fought for years. I had forgotten Id also complained via that link. While I was trying to get answers on why my score went in the opposite direction; I got an email from CFPB updating me on my complaint.  Turns out Equifax told them the lien was already deleted. My score with Equifax continued to slide. Today its fallen to 632 from 698 on the 18th of April. They also removed the additional lien placed on the report since my first dispute nearly a year ago.

 

The score seems to drop a point every single day. I have heard about the formulas and algorithms used to compute our scores but It does not make sense. I know its supposed to be a computer doing the scores but to remove 2 negative accts and two tax liens even a rookie like myself should expect a significant jump. I was told to be patient and my score will go up after the disputes settle but I have waited more than a week and it only goes down. I am convinced I am being punished for the disputes and for seeking help from the CFPB.

 

Any Ideas out there? How can I lose nearly 70 points after removing seriously negative info?


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Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
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Re: Removing satisfied tax liens from credit reports

Hi Stillrise,

Having a hard time following what was deleted/changed when.  Can you maybe post a chronological order of what was removed on what date and the corresponding score changes?  

 

Also, what were the other negatives removed?  Were they CA's or OCs? If they were OCs and were removed your AAoA might have been negatively impacted.  Sometimes if a negative is really old it's doing less damage than the positive impact to AAoA.

 

What is your utilization at?  Has that changed?  That's another one that can cause a big score hit. 

 

What accounts are in dispute? Again, that could impact your AAoA.

 

 



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candacyb
Posts: 2
Registered: ‎03-04-2013
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Re: Removing satisfied tax liens from credit reports

Hi,

 

Your gave some very helpful tips on removing a federal tax lien.  Would you by any chane know how to remove a state tax lien from your credit report.

Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
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Re: Removing satisfied tax liens from credit reports


candacyb wrote:

Hi,

 

Your gave some very helpful tips on removing a federal tax lien.  Would you by any chane know how to remove a state tax lien from your credit report.


It will depend on the laws in your state.  However, I have yet to hear of anyone successfully get a state tax lien removed.  I've got 3 from the CA FTB and I've hunted far and wide for any way to get them removed but looks like I'm just going to have to wait for them to drop.  

 

Good luck.  :smileyhappy:



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Gh0st
Posts: 79
Registered: ‎02-20-2010
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Re: Removing satisfied tax liens from credit reports

[ Edited ]

I actually do live in ny. How would I go about filing a motion to vacate? Just go down to the cort house and do what exatcly? File a motion?

.Believe.
Regular Contributor
justrock
Posts: 162
Registered: ‎05-30-2013
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Re: Removing satisfied tax liens from credit reports

A motion is a complicated set of legal papers.  As far as I know, you have to have a caption for motion papers --  for instance HSBC V John Doe, and you have to have an index # from when the lawsuit against you is filed.  Unfortunately I don't think NYS has to have a lawsuit to file their tax liens.  They file what I believe is called a "Tax Warrant", which then becomes a Tax Lien and a public record.  The Tax warrant has it's own number, perhaps that is what you would use in a motion.   If you are determined to go through the courts you will need an attorney.  I work for attorneys, so I have a tiny bit of background, but if I knew how to get this done I would get my own tax lien removed. 

:smileymad:


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