topic Re: Scared about Paying off a (State) Tax Lien on Thursday in General Credit Topics

Scared about Paying off a (State) Tax Lien on Thursday

Anonymous — Mon, 25 Feb 2008 13:03:58 GMT

Hello myFico Family!

I am paying off a State Tax Lien on Thursday (2/28). This was filed in March 2004. I know the removal clock doesn't start ticking until after the pay off is documented. However, this is only reporting on TU and EQ not EX. I am afraid that paying off this tax lien will lower my EX score (which is my highest FICO). Should I be worried? Any advice?

Re: Scared about Paying off a (State) Tax Lien on Thursday

Anonymous — Mon, 25 Feb 2008 13:28:26 GMT

Congrats for getting this paid-

Are you paying in certified funds? How soon are you getting the release? Do you have to file the release or does the state do that for you?

Re: Scared about Paying off a (State) Tax Lien on Thursday

Anonymous — Mon, 25 Feb 2008 13:49:39 GMT

I didn't notice more than like a 5 pt drop momentarily when I paid off the IRS lien, certified funds and they faxed the release to the agent who was kind enough to help me.

No worries - it feels so good to get rid of it let me tell you and you will be doing great within the month. I would however if you need proof as soon as possible, ask them to give you a "paid" stamp - my State wouldn't give me anything, they told me to call about two weeks after payment & ask for a statement to show zero due

Funny thing - so far they won't release my refund because their stupid computers don't talk to each other and they think I still owe - have called 3 times - told sorry, we have no idea WHY it's being withheld as there is no debt...there is a letter being mailed to me though - latest guy told me to just wait for the letter and then call/write - give me a break - they tack on interest/penalties up the whazoo yet they won't/can't tell me WHY I cannot get my refund!

Sorry I vented - it can be really frustrating!

Message Edited by beach123 on 02-25-2008 07:49 AM

Re: Scared about Paying off a (State) Tax Lien on Thursday

Anonymous — Mon, 25 Feb 2008 14:58:25 GMT

Hi Timothy!

When you say certified funds, what do you mean? I was planning to pay by money order. Is that sufficient? I currently live in Florida, but the State Tax Lien is for New York.

Also, I don't know anything about filing a release or release(s) in general. Could you explain that to me please?

Does a release mean removal from Credit Report(s)?

Re: Scared about Paying off a (State) Tax Lien on Thursday

Anonymous — Mon, 25 Feb 2008 15:14:53 GMT

Hi gfrazier14.

I'd pay with certified check, if it were me. But that's just me. I'd think a M.O. would be ok.

When you pay for a tax lien, the state should send you a document indicating the lien has been paid and is satisfied. It will either be a copy of the orig. lien with an official state date stamped marked "PAID", OR they will send you a form called a Release of Lien, Release of State Tax Lien, or something similar.

You need to find out from the taxing authority, if THEY file the release at both the courthouse where it was filed, but also with the CRA's. If they do......watch for your CR to update in 309 or 60 days. If they DO NOT, then it's your responsibility to file the tax lien release at both the courthouse and with the CRA's.

Congratulations for getting this done. It's a good feeling to be out from under that burden.

Hope that helps.

Re: Scared about Paying off a (State) Tax Lien on Thursday

Anonymous — Mon, 25 Feb 2008 16:11:56 GMT

I used a USPS money order for mine. Took 2 weeks for them to process the release (and by which time they had added more interest on an already paid account (they zeroed it) - then 2 MONTHS for it to get recorded.

ZEven though the lien reporting is a negative for the next seven years - it is much less constraining than having an unpaid tax lien (KISS OF DEATH).

Message Edited by Lady_Scarlet on 02-25-2008 11:11 AM