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Paid tax liens - what effect should I expect?

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Anonymous
Not applicable

Paid tax liens - what effect should I expect?

We had three tax liens filed in '05. Finally got them paid and recently filed the release letters with the court.

 

Will they now have a greater short term negative effect because the status date is recent? Does paying them affect the score? Obviously having them paid is important to lenders because it removes the potential risk of attachement, but what will this actually do to the score?

Message 1 of 6
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Anonymous
Not applicable

Re: Paid tax liens - what effect should I expect?

Paying them won't help raise your scores, though paid does look better on a manual review.  You might want to contact the tax agencies in question to see if they will remove the liens entirely from your credit report.  Some will once the tax is paid.
Message 2 of 6
Anonymous
Not applicable

Re: Paid tax liens - what effect should I expect?

I didn't expect them to raise the score, at least in the short term. (As they get older it should improve a bit.)

 

My concern is for the status date. Does paying them redate them so now they are based on the release date instead of the filing date which was 5 years ago? In which case they could have a detrimental impact on the scores.

Message 3 of 6
GFer
Valued Contributor

Re: Paid tax liens - what effect should I expect?

Tax liens are released 7 years from date paid or 15 years if not. (At least in MO)

Paying them doesn't help score and recent activity (such as paying them does cause scores to dip to some degree.

 

Forgot to mention:  Unpaid I got no approvals for cc's. Paid got me several.  Smiley Wink

 

Granted some issuers still shy from me, but time will heal that.

Message Edited by GFer on 10-02-2008 07:16 PM


EQ 817, EX 815, TU 813 (Updated 1/5/18: TU 843

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Message 4 of 6
merlin
Member

Re: Paid tax liens - what effect should I expect?

Paying them won't help raise your scores, though paid does look better on a manual review.  You might want to contact the tax agencies in question to see if they will remove the liens entirely from your credit report.  Some will once the tax is paid.

 

Huh? Who would be removing them? Aren't they picked up from the public record, not from being reported by the state?

Message 5 of 6
rom828
Established Contributor

Re: Paid tax liens - what effect should I expect?


@merlin wrote:

Paying them won't help raise your scores, though paid does look better on a manual review.  You might want to contact the tax agencies in question to see if they will remove the liens entirely from your credit report.  Some will once the tax is paid.

 

Huh? Who would be removing them? Aren't they picked up from the public record, not from being reported by the state?


 

I have a paid state tax lien also and the state agent advised he can do nothing to help get it removed (he was very nice about it, tho!) as it is indeed public record.

 

As a matter of fact, mine is 1998 lien I wasnt even aware of til I pulled reports in 2005. Report showed 1998 lien paid in 2003.  Contacted state and they dont even have records on it since it went to "collection", but just showed it was paid in May 2003  by offset(refund applied to this lien).    I dont have my records before 1999, but nothing federal or state shows an offset to pay state taxes in 2003 ....I actually paid taxes that year.  Believe me, if I'd known I'd owed this I would have paid it ($508) before it ever became a lien.  I'm stillnot sure why I never received any notice, etc since the State would have..at least should have..been aware of any adress change since I filed taxes each year!!

 

To make it even worse, they were "running behind" at the State (again according to agent) and the notice didnt get to the clerk of court until 2004, so my lien (which I got a copy of from the clerk of court)  shows "paid, cancelled, satisfied" Oct 2004 which means it wont come off til 2011!!! Smiley Mad

 

I've been able to find nothing in this forum or anywhere else that has been encouraging at all about getting a lien taken off after paid.

 

It's my understanding it counts less and less as it ages, though it does keep you in a PR bucket.  I have even read of some scores going down when a lien drops off because of bucket change, so I've just resigned myself to the fact that fair or not, it will remain.Smiley Sad

 

 

 

 

FICOS: TU 732(05-16-16) EQ '08 739( 05-16-16) EX 737 (08-17-16)
Message 6 of 6
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