topic released lien vs satisfied lien? Need help understanding. in General Credit Topics

released lien vs satisfied lien? Need help understanding.

Anonymous — Wed, 28 Nov 2012 18:33:05 GMT

I currently have a state tax lien from Delaware that I paid in full back in 2009. The 3 credit agencies have it marked as released. I did receive a letter from DE tax dept. saying it was satisfied in full. Should I be trying to get the crediting agencies to change my status from released to satisfied or does it really matter at this point?
I would LOVE to know if there are measures I can take to get this completely wiped off my report instead of waiting 7 years. All this for $122 dollars owed.......had I known better I would have paid this one way or another back then.

Re: released lien vs satisfied lien? Need help understanding.

llecs — Wed, 28 Nov 2012 18:37:23 GMT

In the eyes of lenders and FICO, it doesn't matter if it is released or satisfied. I would take steps to see about getting it removed. I can't speak to state liens, and YMMV on state of course, but federal liens are fairly easy to get removed once paid. Definitely search around for others in DE.

Re: released lien vs satisfied lien? Need help understanding.

Anonymous — Wed, 28 Nov 2012 18:50:17 GMT

Thanks for your reply. I've been searching and will continue to search. I even called the Delaware Division of Revenue today. I asked if they had any steps I could take to have this removed ffrom my credit report and they said no I would have to wait the 7 years. I just hate that it sits on my report now after all these years. When I recently tried to buy a car this was the FIRST thing they mentioned..."Oh you have a lien". When I tried to explain that it was paid 4 years ago and it was only for $122 dollars it didn't really seem to matter at that point.

Re: released lien vs satisfied lien? Need help understanding.

RobertEG — Wed, 28 Nov 2012 18:53:49 GMT

As with any type of delinquent indebetness, be it a tax lien, monthly delinquency, charge-off, collection, etc., the reporting is of the occurence of the delinquency at that point in time. Subsequent status of payment or non-payment of the debt does not alter the accuracy of the reporting of its prior status, and is thus not a basis for deletion of the prior reporting.

Do you know the name of the party who reported the lien to the CRA? Being a public record, that is often difficult to determine, but if you can identify and contact them, they always have the ability to delete their own prior reporting.

Re: released lien vs satisfied lien? Need help understanding.

Anonymous — Wed, 28 Nov 2012 19:06:13 GMT

yes I actually have a copy of the cancelled check and I paid that money to the Penn Credit Corp. That is all I know about them.....is what's on my cancelled check. Do you think it would be worth a shot to try and contact them directly?

Re: released lien vs satisfied lien? Need help understanding.

Anonymous — Wed, 28 Nov 2012 19:07:38 GMT

oh wait! I just went back and re-read your posting....I am not sure if Penn Credit Corp was WHO reported it...all I know is that is where I paid this debt off.

Could they be one in the same?

Re: released lien vs satisfied lien? Need help understanding.

brother7 — Wed, 28 Nov 2012 22:44:27 GMT

@llecs wrote:
federal liens are fairly easy to get removed once paid.

Is this true? I thought liens stay on a CR for 7 years after being satisfied/released/paid.

If it's possible to get it removed before the 7 years, how should one word the dispute?

Re: released lien vs satisfied lien? Need help understanding.

llecs — Thu, 29 Nov 2012 00:51:23 GMT

I never went through the process, so bumping for others, but the IRS recently changed their rules were you can get a tax lien off early. I don't know if there's a paperwork request or what, but definitely search in here. It doesn't involve the CRAs or a dispute. It's a request directed to the IRS.

Re: released lien vs satisfied lien? Need help understanding.

Anonymous — Thu, 29 Nov 2012 11:40:12 GMT

From everything I have read recently....it is MUCH easier to get a federal tax lien removed than a state tax lien. There are actually forms for those with a federal tax lien that you can fill out and submit to have removed.

Still no luck on the state level.

Re: released lien vs satisfied lien? Need help understanding.

kimmiller112 — Fri, 30 Nov 2012 16:57:15 GMT

@brother7 wrote:
@llecs wrote:
federal liens are fairly easy to get removed once paid.
Is this true? I thought liens stay on a CR for 7 years after being satisfied/released/paid.
If it's possible to get it removed before the 7 years, how should one word the dispute?

Yes, you can have a paid federal lien removed very easily but it has to be done through the IRS. Do a web search for withdrawing a federal tax lien. The IRS has a form that needs to be completed and mailed - you will also have do to a web search on where it needs to go as the addresses are listed separately and depend on where you live. You can include a list of the mailing addresses from all three CRAs and they will send the notice of withdrawal directly to them as well as a copy to you. The processing time through the IRS is about 45 days and all of my CRAs were updated about a week later.