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10-12-2010 03:06 PM
I'm really making some progress with credit rebuilding so far and I have a question about a tax lien I have on both TU and Exp.
I have a public record for both TU and Exp for my taxes in 2003. What I'm curious of is a few things:
1. How much JUST BALLPARK OF COURSE does this hurt my overall score (it was for 811 dollars which has been paid).
2. Does a tax lien/public record fall off after 7 years? I've heard as much as 10, but I'm not sure.
3. When this finally DOES drop off, how much of a ballpark amount could I expect to increase?
THANK YOU SO MUCH IN ADVANCE!!
Here's what it looks like on my file:
Tax Lien filed on Jul 01, 2004
|Jul 01, 2004|
Should I just let this go as is and hope it drops off in About 9 months?
10-13-2010 01:42 AM - edited 10-13-2010 12:55 PM
Congrats on the progress! i hope this site has helped.
Tax liens, as they relate to credit reportng, are controlled by FCRA 605(a)(3).
Very simple, this is not opinion it is the specific langauge of the statute,
"Paid tax liens, which from the date of payment, antedates the report by more than seven years."
Take the date payment was reported to the CRA, add 7 years, then add one month. Make sure that payment was reported to and recorded by the CRA, or they will have no basis for deltion from your CR.
Payment can often be a trcky thing to show up in your credit file, and thus to get delted. Tax liens are often not reported by the actual tax lien holder. They are pubic records/
So you often cant dispute lack of reporting or deletion with the lien holder.
Monitor the date of one 7 years plus one month from the date you paid the tax. If it is still, thereafter, in your credit report, just come back here, and we can tell you the next step.
How much you will gain in your FCO score is primarily a factor, not of this one item but more of what other derog items are in you credit report.
It may clean up all major derogs in your credit report, but may not.
What other derogs still remain?
It could be in the ballpark of a 40-pt gain or could be only 5 pts.
10-13-2010 06:08 AM
Hi pritchardhallhokie! Welcome to the myFICO Forums!
When did you pay your tax lien?
A tax lien (paid or unpaid) is a major derog (public records are the worst!), and hurts for as long as it remains. As RobertEG indicated, it'll remain for 7 years *after* it's paid.
The good news is that when it drops, you will likely see a significant boost in your score (there's no way to guesstimate what that boost might be). The entirety of your report(s) factor in to how much a derog is hurting you at any given time. But, as a general rule of thumb & unless you have more recent major derogs, the removal of that derog will shoot your scores up a good bit.
Oh, and here's a thought-- Is this a local, state, or federal tax lien? If it's local or state, you may find that there is a "taxpayer advocate" who you can talk to about your situation. Depending on the circumstances of that lien being placed, you might have a legitimate cause for removal. It doesn't hurt to ask!
Friendly, Supportive & Respectful
"However gradual may be the growth of confidence, that of credit requires still more time to arrive at maturity” ~ Benjamin Disraeli
10-13-2010 07:56 AM
Guys, thanks so much for the help thus far.
The thing is, I THINK I paid it in 2008. I KNOW it's been paid but it doesn't show a paid date on myfico's report. Even though this is paid and from 2004, does this still hurt as much as it did the first day of filing? Also, would an advocate perhaps be able to get this removed from my report? I'm at 609 right now and I would imagine having this removed would increase my score by at least 50 points.
10-13-2010 08:19 AM
Ok guys. Here's an update. HELP!!!!!
I called the tax advocate in GA and they gave me some phone numbers, yadda yadda yadda. Finally I realized that this in fact has not been paid in full and there's still a balance of about 400 dollars on it. I have to contact the CA who handles my file now and pay this amount off. They will then notify the court that it has been paid in full and the court will certify this then send this to the Dept. of Revenue saying this has been satisfied and the Dept. of Rev will mail me the stamped letter saying the lien has been removed and the debt satisfied. She said I could then notify the CBs that this has been paid and satisfied. BUT!!! WILL THIS CHANGE MY CREDIT REPORT AT ALL???
What are the chances of having this removed? Will having this paid help my score? This was from 2004 so I was hoping it would fall off next year, but it sounds like I'm going to have to wait ANOTHER 7 years for this to change. Is this true?
Thank You guys!!!!
10-13-2010 12:52 PM - edited 10-13-2010 02:47 PM
Yeah, I will bump this question to O6. He has the best legal advice on this site.
He wllll wander in later and give you the legal scoop!
Best of luck.