If your lender pulls another credit report before closing this will definitely be a big issue, especially if you didnt reveal this payment arrangement to them before. Read the attached link from the IRS website. http://www.irs.gov/newsroom/article/0,,id=236540,00.html I was able to qualify for this withdrawal, and it sounds like you may qualify as well. It took me about 10 days to get the withdrawal in the mail from the IRS. I then sent it to the credit bureaus to have it removed. I think it took about 3 weeks before all 3 bureaus removed it, but others may be able to give you some better contacts that can have it removed quicker. You should jump on this immediately. I would FedEx the form to them tomorrow (or check to see if they have a fax number). Good luck and act quickly!

Once you get that you can also ask your LO to do a rapid rescore 

i have seen this before. some time a problem, some times not.

might be ok with an ontime payment history.

will be seen as any other debt.

 

ask your lender..... they may interpret this diffferently.

 

Great ,thanks for the info..I am printing the form now. Will get it completed right away.

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engineer90 wrote:

I Qualify for a VA home loan but my Tax Lien has stopped me from getting a mortgage.

I have a Tax Lien for $19K. I have gone to the IRS and made a payment plan.This is my 2nd month to make the payment.

I make enough money to buy a house but the tax lien stops every mortgage company to even talk to me about getting financed.

Do you know of a mortgage company that I can get financed?

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maybe. if you set up your payment plan on auto draft, they can release the lien.

Then it will just be a payment plan on back taxes... no lien.

 

does anyone have a link to the post Shane posted about this?

 

 

Yes!  the above statement is true.YOU can get the lien released, but I would enlist the help of  your local tax advocate and tell them what you are trying to do. They will receptive if you are upfront with them.  Your tax advocate is there to help you, it can be done.  I had a friend in the same situation and they released the lien and agreed to pursue second position if he defaulted on the loan.  It can be done. 

Thank you both for replying to my post.

vlaw1084 when you stated tax advocate are you talking about the customer service person at the IRS office?

How long did it take for the IRS to release your friend lien?

I made a payment plan and I have made 2 payments by money order but the auto draft starts in Oct 2012. I am wondering how long I will have to wait to get this lien released after the auto draft starts.

I would appreciate if someone has any links that I can read of a tax lien release.

I'm closing today with an FHA loan.  My tax liens were released sometime last year after I entered into a payment arrangement with the IRS.  To close on this loan I needed to have 12 months of on time payment information but didn't need to have any liens released.  You may need to get the IRS to subordinate their lien and the form required to do so says it takes at least 45 days.  Look at publication 784 on their website.  If you've dealt with them, you know 45 days to them is 6 months to us.  Good luck!!  The last two weeks have been the most stressful I've ever been through but I think it is all going to be worth it!!