topic Re: Tax Lien and a mortgage in Mortgage Loans

Tax Lien and a mortgage

Anonymous — Wed, 20 Feb 2008 19:06:21 GMT

Is it possible to qualify for a first time home buyers mortage with a good credit score even though I have a tax lien?

Re: Tax Lien and a mortgage

wfreeman3 — Thu, 21 Feb 2008 00:16:37 GMT

How old is the lien? Is it Federal or State? Is it paid? How much is it for?

Re: Tax Lien and a mortgage

ShanetheMortgageMan — Fri, 22 Feb 2008 10:47:59 GMT

wfreeman3 wrote:
How old is the lien? Is it Federal or State? Is it paid? How much is it for?

All great questions.

Re: Tax Lien and a mortgage

Anonymous — Fri, 22 Feb 2008 17:26:05 GMT

I am in the same situation. Tax lien on federal. Not paid off, in the process of working a deal. Hired J&k harris to see if they can work something out out with the IRS. And I am looking to buy a home soon but i know that if i have a tax lien that I would not qualify for a FHA loan because they are government loans.

Any way to go around this situation?

Feed back is greatly apprecated!

Re: Tax Lien and a mortgage

Anonymous — Fri, 22 Feb 2008 18:01:19 GMT

We applied for acorn and were preapproved. As long as you show that it was paid off I think your good to go. We were.

Re: Tax Lien and a mortgage

demi — Fri, 22 Feb 2008 19:53:21 GMT

I owe Fed from 2004 - never filed, had major back surgery and was on disability for 5 1/2 months and not enough taxes were taken out. Never a word has been said to me, no correspondence, no lien, nada. Don't care that they haven't come after me, just borrowed from my 401k to take care of....of course putting it off like this I am sure I am going to eat it in late fees and interest. But, as my house progresses (still waiting on permits) its the only possible problem out there at this point, and with my luck, would show up just in time. Plus, I can sleep at nights. So, as I wait for the $$$ to come, any suggestions on how to deal with the IRS ? We are talking about $3,000 taxes, I don't see a need to hire someone (or at least don't think I do).

Re: Tax Lien and a mortgage

ShanetheMortgageMan — Sat, 23 Feb 2008 01:03:47 GMT

Kodobe wrote:
I am in the same situation. Tax lien on federal. Not paid off, in the process of working a deal. Hired J&k harris to see if they can work something out out with the IRS. And I am looking to buy a home soon but i know that if i have a tax lien that I would not qualify for a FHA loan because they are government loans.

Any way to go around this situation?

Feed back is greatly apprecated!

In order for FHA to be OK with it, you'll need to have an established payment plan and have 12 months of on time payments... PLUS a subordination agreement by the taxing authority (a subordination agreement says they will stay in 2nd position on title and not endanger the mortgages 1st lien position). However since yours is federal, you might not pass CAIVRS, which is required in order to get an FHA mortgage.

Re: Tax Lien and a mortgage

ShanetheMortgageMan — Sat, 23 Feb 2008 01:05:06 GMT

demi wrote:
I owe Fed from 2004 - never filed, had major back surgery and was on disability for 5 1/2 months and not enough taxes were taken out. Never a word has been said to me, no correspondence, no lien, nada. Don't care that they haven't come after me, just borrowed from my 401k to take care of....of course putting it off like this I am sure I am going to eat it in late fees and interest. But, as my house progresses (still waiting on permits) its the only possible problem out there at this point, and with my luck, would show up just in time. Plus, I can sleep at nights. So, as I wait for the $$$ to come, any suggestions on how to deal with the IRS ? We are talking about $3,000 taxes, I don't see a need to hire someone (or at least don't think I do).

You might want to call up the IRS and ask them if taxes are owed... if they say no, then no need to worry. If they say yes, then set up a payment plan with them, as long as you are on the payment plan they shouldn't report a tax lien.

Re: Tax Lien and a mortgage

demi — Sat, 23 Feb 2008 04:45:47 GMT

Shane - wouldn't I need a 12 month payment for FHA (I am pretty sure I owe)

Re: Tax Lien and a mortgage

ShanetheMortgageMan — Mon, 25 Feb 2008 10:42:58 GMT

Not if it doesn't report as a tax lien... if no tax lien has been filed then there is no reason for FHA to worry about it, since it couldn't be attached to your home. If there is a tax lien, then well yes, you could likely need a 12 month payment history. On a tax lien, the 12 month payment history is definitely suggested, but since it happened over 12 months ago an underwriter is likely to OK it without a full 12 month payment history... as long as payment plan has been established.