Experience With Tax Lien Being Removed?

[jamie123]

With the new protocols the CRAs are supposed be using in regards to removing tax liens that don't have supporting information, tax liens are supposed to be removed by the end of July.

I've had 2 State tax liens on my EQ and TU reports since 2006. Yes, really! Both liens were removed from my TU report about 10 days ago (Still on EQ) but I've not experienced much movement if any in my TU score.

Now, I do have rather high utilization reporting at the moment. I have 10 open CCs. 2 of 10 are reporting just over 50% of their CLs, all others $0. My total reporting UT is 23%. (I bought a house earlier in the year and am taking advantage of 0% offers on these 2 new CCs.)

I was wondering what score increases others have experienced when tax liens were removed from their reports? The tax liens have been the #1 reason code listed for my scores for just about forever! Now that they are gone it is high UTI.

If you have an otherwise clean report, what happened when a tax lien dropped off?

(I do have 5 new accounts less than 1 year old. The mortgage, auto loan, and 3 credit cards.)

[Revelate]

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@jamie123 wrote:

With the new protocols the CRAs are supposed be using in regards to removing tax liens that don't have supporting information, tax liens are supposed to be removed by the end of July.

I've had 2 State tax liens on my EQ and TU reports since 2006. Yes, really! Both liens were removed from my TU report about 10 days ago (Still on EQ) but I've not experienced much movement if any in my TU score.

Now, I do have rather high utilization reporting at the moment. I have 10 open CCs. 2 of 10 are reporting just over 50% of their CLs, all others $0. My total reporting UT is 23%. (I bought a house earlier in the year and am taking advantage of 0% offers on these 2 new CCs.)

I was wondering what score increases others have experienced when tax liens were removed from their reports? The tax liens have been the #1 reason code listed for my scores for just about forever! Now that they are gone it is high UTI.

If you have an otherwise clean report, what happened when a tax lien dropped off?

(I do have 5 new accounts less than 1 year old. The mortgage, auto loan, and 3 credit cards.)

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Lucky bud  I finally got tired of waiting so just opened stupid disputes to try to push the bureaus along on this one.  Congrats on the removal!

Have you pulled to verify you don't have a change in score or where are you tracking it?  I got a boost on TU when my tax lien dropped (though not clean there) and I definitely got one back in December when it wandered away on EX for a week... your file I know is thick enough that you'd get real points if all your PR's are gone.

If I do get my liens off I'm expecting to go to at least 780 on both EX/EQ FICO 8 and I might (maybe) hit 800, that's a big stretch though I think on my file but stranger things have happened in FICO land.

[Anonymous]

I have had releases, one state one federal, drop off Experian and Transunion this month but am still waiting for Equifax. The liens only show a partial SSI number and no date of birth. Does anyone have the definitive answer as to whether a partial SSI is enough to work or does the whole SSI number need to be redacted?

[jamie123]

Yeah, I'm super stoked that TU and EX are totally clean now! It will just be a matter of time now to get all my new accounts aged a bit and my UTI back where it should be early next year. Still waiting on EQ to lose the 2 tax liens by the end of the month or I will be disputing them.

My EQ and TU scores were in the 720s for the mortgage and I had a 35% down payment so I was able to get a good mortgage rate at 3.875%. I had cash for the car purchase but couldn't pass up the 60 months @1.79% loan that I received on the car loan. (Invested that $25K and have already made more than enough to pay for the interest on the auto loan.)

And Rev...You just wouldn't believe how difficult it was even working with an attorney to get my State of Ohio tax liens paid off and properly reported to the credit bureaus. 19 frikken months! What a total clusterf***k the Ohio State Tax Department is!

I've been tracking my TU score through my credit cards like Walmart, Discover and BoA and yes, they are updated scores but they haven't moved much.

With low UTI and clean reports I think that I can get my EQ and TU scores to about 760-780. My EX has an old closed line of credit from 1986 so it gives me a boost in the EX score. I think that I can get my EX to 820 in a year. It was 810 for my mortgage pull.

Good to hear from you and I'm glad you are doing well! I've been lurking around but not participating much lately. You know how it goes, life can get busy!

[Anonymous]

Just to see what was going on I called the Equifax dispute center and got the total run around. First and foremost, I hate the fact that they out source their call centers and really think it's a slap in the face to the average consumer to introduce a language barrier into such an important conversation.

Any way....it was no surprise that neither the call center agent or their supervisor had any knowledge of the National Consumer Assistance Plan or the Consumer Finanical Protection Agency. Not only did they say they never heard of it, they couldn't direct me to anyone that may have knowledge and went as far as to refuse to investigate what I was referring to. 

Typical. I will wait to the end of the month and if nothing is resolved I will file a complaint with the CFPA on their website. Really annoying they can't get a handle on this. The NCAP is a program implemented by the CRAs and you'd think Equifax would be particularly sensitive since it was the lawsuit against them that got this whole process started. 

[Tim_S]

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@jamie123 wrote:

With the new protocols the CRAs are supposed be using in regards to removing tax liens that don't have supporting information, tax liens are supposed to be removed by the end of July.

I've had 2 State tax liens on my EQ and TU reports since 2006. Yes, really! Both liens were removed from my TU report about 10 days ago (Still on EQ) but I've not experienced much movement if any in my TU score.

Now, I do have rather high utilization reporting at the moment. I have 10 open CCs. 2 of 10 are reporting just over 50% of their CLs, all others $0. My total reporting UT is 23%. (I bought a house earlier in the year and am taking advantage of 0% offers on these 2 new CCs.)

I was wondering what score increases others have experienced when tax liens were removed from their reports? The tax liens have been the #1 reason code listed for my scores for just about forever! Now that they are gone it is high UTI.

If you have an otherwise clean report, what happened when a tax lien dropped off?

(I do have 5 new accounts less than 1 year old. The mortgage, auto loan, and 3 credit cards.)

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I had a 57 point increase on Equifax when my paid and released federal tax lien was removed from Equifax last week, (it was removed from Experian and Trans Union last year).  My 3 reports are now 100% negative-mark free.

[nycfico]

It's ironic...I've been working my behind off to get my IRS tax liens removed by paying my balance down to below $25,000 (from an opening balance of $75,000 three years ago), and setting up automatic debits etc.  I did all that, filed the right form with the IRS, dealt with the credit bureaus and now I finally over the past two weeks have had my liens withdrawn by the IRS and off the credit reports...only to find out that they would have disappeared anyway this month in all likelihood!

What I don't understand, though, is how good can a fico score be if people have large balances due to the IRS and without a lien in place, there is no way to know that?  Let's suppose you have a $50,000 obligation to the IRS....and they are coming after you.  But say you have no other lates and low util etc and have an 800 score. How credible is that score if it doesn't take into account the fact that the most powerful collection agency in the world wants their money and are coming at you hard?

[Anonymous]

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@nycfico wrote:

It's ironic...I've been working my behind off to get my IRS tax liens removed by paying my balance down to below $25,000 (from an opening balance of $75,000 three years ago), and setting up automatic debits etc.  I did all that, filed the right form with the IRS, dealt with the credit bureaus and now I finally over the past two weeks have had my liens withdrawn by the IRS and off the credit reports...only to find out that they would have disappeared anyway this month in all likelihood!

What I don't understand, though, is how good can a fico score be if people have large balances due to the IRS and without a lien in place, there is no way to know that?  Let's suppose you have a $50,000 obligation to the IRS....and they are coming after you.  But say you have no other lates and low util etc and have an 800 score. How credible is that score if it doesn't take into account the fact that the most powerful collection agency in the world wants their money and are coming at you hard?

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Conversely, you started with a high balance and paid it down throughout the years and yet did they update the balance and report your stellar repayment history to your future creditors? Of course not, to the average creditor all they see is this big honking lien from a few years ago and no other information. Also, if you happen to move and the lien follows you to another county or state did you know that when it gets moved to that IRS office they refile the lien in your new state/county and now it sits there for 10 years from that date? It's completely mismanaged from so many levels that they need to stop reporting liens until such time the IRS or any tax agency is ready, willing and able to update the reporting monthly like any other item on your credit file and not just drop it there and never look at it again regardless of what changes. 

[Anonymous]

I can see where in the future lenders will do manual searches for tax liens. 

[Revelate]

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@Anonymous wrote:

I can see where in the future lenders will do manual searches for tax liens. 

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They already do public records searches in the mortgage world for this very reason.

For other things, I'm not certain anyone really cares.  Auto loans (within reason, if you have a dumbly expensive car one can be made to sell it in a BK proceeding for example but they allow primary transportation basically), credit cards, the goverment isn't coming to take those away from you if you have a tax lien... houses though are fair game.

Anyway my tax lien came back "verified" so meh, guess I am still going to be waiting.