Reply
Frequent Contributor
Kathy4NU
Posts: 280
Registered: ‎07-09-2012
0

State Tax Lien

I have a state tax lien from 1994 that was partially paid off in 2007.  It was reporting only on Equifax but was removed a year ago when I called to ask what it was.  The rep at Equifax said "Oh, this needs to be deleted because of how old it is" and it disappeared.  It was never on the other two that I am aware of.  I guess it could have been than deleted prior without I ever knowing it was there.  I never pulled my credit reports back than to know if it was on them or not.

 

What is owned on it is around $325.  I have a cashiers check to pay it off.  My question is - what are the chances of the big 3 picking up on it and thus placing a paid tax lien on my report if I do pay it off.  




June '12: EQ 553 TU 0 EX 545
April '13 Lender Pull EQ 731, EX 692, TU 722 - all FICO

Closed on home May 22, 2013 at 2:00pm!!!
CU Visa $1000, VS $350, Chase Freedom $1000, Discover IT $2500, Home Depot: $2700, Menards $3000, NFM $3500
What's been deleted: 32 collections, 5 PR, 2 tax liens, defaulted student loans
Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
0

Re: State Tax Lien

Chances are zero I'd say.  Unpaid liens can stay for 10 years and paid for 7 whichever comes first. If your lien was filed in 1994 it should have dropped off almost 10 years ago.  

 

Are you sure you still even owe the $325? After a certain amount of time it may become uncollectible. (Probably need to check your state laws).  



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


Take the FICO Fitness Challenge
Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: State Tax Lien

Unpaid tax liens can stay indefinitley.  Paid tax liens 7 years from date paid.

Frequent Contributor
Kathy4NU
Posts: 280
Registered: ‎07-09-2012
0

Re: State Tax Lien


electra wrote:

Chances are zero I'd say.  Unpaid liens can stay for 10 years and paid for 7 whichever comes first. If your lien was filed in 1994 it should have dropped off almost 10 years ago.  

 

Are you sure you still even owe the $325? After a certain amount of time it may become uncollectible. (Probably need to check your state laws).  


Yes, I still owe it.  I went into the revenue service and verified.  I have a copy of the lien.

 

I know it was on EQ and deleted because of age.  It is now 19 years old.  I want to pay it and clear the lien.  I don't want to chance it being picked up by the CRA's and causing my scores to plummet.

 

However, if I pay it than the CRA's can pick it back up and report it for an additional 7 years.  This is what I want to avoid.  I talked with 3 levels of supervisors and they would not under any circumstances withdraw it. 

 

One thing I don't fully understand is how or when the CRA's scan public records to insert information on credit reports.




June '12: EQ 553 TU 0 EX 545
April '13 Lender Pull EQ 731, EX 692, TU 722 - all FICO

Closed on home May 22, 2013 at 2:00pm!!!
CU Visa $1000, VS $350, Chase Freedom $1000, Discover IT $2500, Home Depot: $2700, Menards $3000, NFM $3500
What's been deleted: 32 collections, 5 PR, 2 tax liens, defaulted student loans
Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: State Tax Lien

They don't themselves, they hire outside agencies to do it.  Like Lexus Nexus.

 

I also do not believe that once you pay it it can be reinserted.  You said it was removed due to age.  Just because you pay it it should not be reported again.

 

Did someone tell you that?

Frequent Contributor
Kathy4NU
Posts: 280
Registered: ‎07-09-2012
0

Re: State Tax Lien


guiness56 wrote:

They don't themselves, they hire outside agencies to do it.  Like Lexus Nexus.

 

I also do not believe that once you pay it it can be reinserted.  You said it was removed due to age.  Just because you pay it it should not be reported again.

 

Did someone tell you that?


No, I am just assuming they can put it back on there.  

 

The guidelines say 10 years for unpaid or 7 years from date of being paid; whichever is later.  

 

My thinking is that once I pay it than the 7 year clock can start ticking again,

 

Is my thinking wrong?




June '12: EQ 553 TU 0 EX 545
April '13 Lender Pull EQ 731, EX 692, TU 722 - all FICO

Closed on home May 22, 2013 at 2:00pm!!!
CU Visa $1000, VS $350, Chase Freedom $1000, Discover IT $2500, Home Depot: $2700, Menards $3000, NFM $3500
What's been deleted: 32 collections, 5 PR, 2 tax liens, defaulted student loans
Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
0

Re: State Tax Lien

There's actually some conflicting info out there on unpaid tax liens.  I think some of the confusion may be around State law for Consumer Credit.  I am in CA and have 6 tax liens all paid/released now.  3 are CA State, 3 are IRS.   I'm certain about the 10 years for unpaid and 7 for paid whichever comes first at least if you are in CA.  Here's how:

 

1) The Information on my Experian Credit report (from Experian...not a 3rd party) above my IRS tax lien says: "Missed payements and most public record items may remain on the credit report for up to seven years, except Chapters 7, 11 and 12 bankruptcies and unpaid tax liens, which may remain for up to 10 years.  A paid tax lien may remain for up to seven years.

 

2) My Transunion Credit report (again...directly from TU...not a 3rd party) lists the following for 2 of my paid liens:

  • Tax lien A (Federal)
    • Date Filed:  03/11/2009
    • Date Paid: 02/18/2013
    • Estimated month and year that this item will be removed:  02/2019
  • Tax lien B (CA State)
    • Date Filed:  09/25/2003
    • Date Paid:  04/09/2007
    • Estimated month and year that this item will be removed:  08/2013

 

You can clearly see that in both of these cases the exclusion date is based on 10 years from the date the lien was filed.  If paying them "reset the clock" the exclusion date for Tax lien A would be 01/2020 and for Tax lien B would be 03/2014.

 

That said...Experian's "expert" seemingly contradicts what they have clearly stated on my report:  http://www.experian.com/ask-experian/20090121-tax-liens-and-your-credit-report.html   

 

Here's what EQ has to say about tax liens on their site (note the section on CA):   https://help.equifax.com/app/answers/detail/a_id/164/noIntercept/1/kw/tax%20lien/session/L3RpbWUvMTM...

 

Here's what TU has to say:  http://www.transunion.com/personal-credit/customer-support/faqs/credit-basics.page#publicRecords

 

 

Again...maybe this is because I am in CA and State law prevails but in my case anyway it is 10 years unpaid or 7 years paid, whichever is FIRST.

 

 



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


Take the FICO Fitness Challenge
Frequent Contributor
Kathy4NU
Posts: 280
Registered: ‎07-09-2012
0

Re: State Tax Lien


electra wrote:

There's actually some conflicting info out there on unpaid tax liens.  I think some of the confusion may be around State law for Consumer Credit.  I am in CA and have 6 tax liens all paid/released now.  3 are CA State, 3 are IRS.   I'm certain about the 10 years for unpaid and 7 for paid whichever comes first at least if you are in CA.  Here's how:

 

1) The Information on my Experian Credit report (from Experian...not a 3rd party) above my IRS tax lien says: "Missed payements and most public record items may remain on the credit report for up to seven years, except Chapters 7, 11 and 12 bankruptcies and unpaid tax liens, which may remain for up to 10 years.  A paid tax lien may remain for up to seven years.

 

2) My Transunion Credit report (again...directly from TU...not a 3rd party) lists the following for 2 of my paid liens:

  • Tax lien A (Federal)
    • Date Filed:  03/11/2009
    • Date Paid: 02/18/2013
    • Estimated month and year that this item will be removed:  02/2019
  • Tax lien B (CA State)
    • Date Filed:  09/25/2003
    • Date Paid:  04/09/2007
    • Estimated month and year that this item will be removed:  08/2013

 

You can clearly see that in both of these cases the exclusion date is based on 10 years from the date the lien was filed.  If paying them "reset the clock" the exclusion date for Tax lien A would be 01/2020 and for Tax lien B would be 03/2014.

 

That said...Experian's "expert" seemingly contradicts what they have clearly stated on my report:  http://www.experian.com/ask-experian/20090121-tax-liens-and-your-credit-report.html   

 

Here's what EQ has to say about tax liens on their site (note the section on CA):   https://help.equifax.com/app/answers/detail/a_id/164/noIntercept/1/kw/tax%20lien/session/L3RpbWUvMTM...

 

Here's what TU has to say:  http://www.transunion.com/personal-credit/customer-support/faqs/credit-basics.page#publicRecords

 

 

Again...maybe this is because I am in CA and State law prevails but in my case anyway it is 10 years unpaid or 7 years paid, whichever is FIRST.

 

 


 

This is somewhat comforting (if dealing with tax liens can be comforting at all).

 

I am contemplating paying it.  I am in the mortgage process and it will come up when they do a title search on me.  My scores are in the low 700's.  I am qualifiying for a decent rate.  I am nervous what will happen to my scores if it hits my report. 

 

One thing is that to the best of my knowledge it wasn't on TU or EX.  Also, from reading on these boards it appears that very seldom do they get updated to paid without the consumer disuputing to get it updated as paid.  Do the CRA only search for unpaid liens than wait for the consumer to notify them that they are paid? 

 

When I first started my repair I found this true with several judgments.  The report showed them as not paid and did not update until I disputed.  I had one fall off a couple months ago that was 7 years old.  It was reported as not satisfied.  I went to the courthouse yesterday to check on who it was and the contact information because I wanted to pay it before the title company found it.  The courthouse told me it was satisfied back in 2007!  That saved me $300! 

 

I am hoping that by paying it and if the CRA's don't update regularly paid PR's/Liens but just new ones I can fly under the radar on this one. 

 

I need to find a solution because I have gone a week with no sleep!!!




June '12: EQ 553 TU 0 EX 545
April '13 Lender Pull EQ 731, EX 692, TU 722 - all FICO

Closed on home May 22, 2013 at 2:00pm!!!
CU Visa $1000, VS $350, Chase Freedom $1000, Discover IT $2500, Home Depot: $2700, Menards $3000, NFM $3500
What's been deleted: 32 collections, 5 PR, 2 tax liens, defaulted student loans
Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
0

Re: State Tax Lien

The way that the CRAs get their public records information is a mystery.  One thing I can say for certain is that the Courts and/or County Recorders DO NOT report information to the CRAs.  (I have spoken to the County Recorder personally regarding this very subject and he himself didn't know how the CRAs got the information...he verified that they NEVER send anything to the CRAs or communicate with them in any way.)   I have heard, and this seems likely, that they hire a 3rd party company (LexisNexis has been speculated) who then hires people to go to the Recorders office or look online for updates.  Who knows...I can tell you I have pulled my LexisNexis report and it DOES NOT contain most of my liens so...I dunno.  I specifically asked for MOV from CRAs and they gave me a vague line of canned BS. 

 

In terms of updates...it's kinda random.  Two of my IRS liens were recently paid...TU and EX updated to paid fairly quickly (at least the one) and EQ I had to dispute.  Interestingly...EX has only 1 of my 6 liens.  Don't know why but I can tell you that paying the second one did not cause it to appear on EX...at least so far and in my case it's NOT past the exclusion date.  (It's been 2-3 months now since it was paid.)

 

If you want to buy a house, I think you are going to have to pay the lien.  I would be VERY surprised if it appeared on your CR and, even if it did, 1) you should be able to get it removed based on the age and 2) it's so old that it's doubtful it would have much impact on your score.  (What happened with your score when it was removed?)  My advice would be to pay it and get some sleep!  :smileyhappy:



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


Take the FICO Fitness Challenge
Frequent Contributor
Kathy4NU
Posts: 280
Registered: ‎07-09-2012
0

Re: State Tax Lien

So, I just used my work phone and called EQ and TU.  I received two different responses.

 

EQ said they remove after 10 years unpaid or 7 years paid.  Which ever is FIRST.

 

TU said they never remove unpaid and remove paid after 7 years. 

 

I could not get through to EX without having a report #.  I don't want them to trace it back to me and set off some alarms.

 

I think I am going to go pay it on Thursday.  Take my chances.  I am not in underwriting yet.  The appraisal has been ordered and we are waiting on that.




June '12: EQ 553 TU 0 EX 545
April '13 Lender Pull EQ 731, EX 692, TU 722 - all FICO

Closed on home May 22, 2013 at 2:00pm!!!
CU Visa $1000, VS $350, Chase Freedom $1000, Discover IT $2500, Home Depot: $2700, Menards $3000, NFM $3500
What's been deleted: 32 collections, 5 PR, 2 tax liens, defaulted student loans

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}