Can someone get mortgage w/tax lien?

[Anonymous]

My credit history full picture for past 6+ years has had "clean-up" work done since my divorce and no lates but one account that has been in dispute for two years...now has a tax lien as of last October...will I ever get a mortgage?  I'm asking the pros for this one or do I just figure I'll never own a house?

I didn't want to get a 2nd job so that I could spend time with my kids when they were small and new to divorce so I claimed a lot of exemptions, didn't pay much tax.  Last year when I made a job transition (off for the summer) I met w/IRS agent to see if I could offer/compromise...they said no...income went down but not enough to get a huge refund...but it was my first in 10 years (married formerly to someone we never had money) so anyway...I'm now going on a payment plan with both STate & Fed, just wondering if someone is blowing smoke or would I really get a mortgage with payment plan in place?

Not sure yet of recent scores but back in Jan they were 602, 636 & 580...the lien and closing 3 credit card accounts caused me to take a powder I know, but I also wanted to be more financially responsible by not having all these TLs.

Thanks for the help!

[Tuscani]

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beach123 wrote:

My credit history full picture for past 6+ years has had "clean-up" work done since my divorce and no lates but one account that has been in dispute for two years...now has a tax lien as of last October...will I ever get a mortgage?  I'm asking the pros for this one or do I just figure I'll never own a house?

I didn't want to get a 2nd job so that I could spend time with my kids when they were small and new to divorce so I claimed a lot of exemptions, didn't pay much tax.  Last year when I made a job transition (off for the summer) I met w/IRS agent to see if I could offer/compromise...they said no...income went down but not enough to get a huge refund...but it was my first in 10 years (married formerly to someone we never had money) so anyway...I'm now going on a payment plan with both STate & Fed, just wondering if someone is blowing smoke or would I really get a mortgage with payment plan in place?

Not sure yet of recent scores but back in Jan they were 602, 636 & 580...the lien and closing 3 credit card accounts caused me to take a powder I know, but I also wanted to be more financially responsible by not having all these TLs.

Thanks for the help!

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Most lender want any liens, judgement, collections paid prior to funding your loan. You best bet is to call around and ask. Every lender has difference requirements.

[Anonymous]

Thanks Tuscani, I see no way of getting it paid in the near future - no assets, nothing to beg a bank for to help pay it off  New job is lower pay.

[Tuscani]

I understand. Is the lien on all three reports?

[Anonymous]

No, for whatever reason it isn't showing on TU.  Bad part is it shows on EQ, which is my lowest score I'm sure

I've gotten a judgement paid immediately, sent copy of the satisfaction and it was removed/cleared but now it's showing differently as of Fall 2006, and I cleared it up with all (3) in Nov 2005, have old CR reports that prove it as well.  (This was a JDB to which I know other than the LVNV I'll never be exposed to again because there are NO other old debts in my name).

I have the homebuyer class this week and can prove what I'm saying if it helps at all...any thoughts on maybe joining a credit union? 

Seriously, my life has done a 360 since divorce except those first few months and the tax thing

[smallfry]

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@Anonymous wrote:

My credit history full picture for past 6+ years has had "clean-up" work done since my divorce and no lates but one account that has been in dispute for two years...now has a tax lien as of last October...will I ever get a mortgage? I'm asking the pros for this one or do I just figure I'll never own a house?

I didn't want to get a 2nd job so that I could spend time with my kids when they were small and new to divorce so I claimed a lot of exemptions, didn't pay much tax. Last year when I made a job transition (off for the summer) I met w/IRS agent to see if I could offer/compromise...they said no...income went down but not enough to get a huge refund...but it was my first in 10 years (married formerly to someone we never had money) so anyway...I'm now going on a payment plan with both STate & Fed, just wondering if someone is blowing smoke or would I really get a mortgage with payment plan in place?

Not sure yet of recent scores but back in Jan they were 602, 636 & 580...the lien and closing 3 credit card accounts caused me to take a powder I know, but I also wanted to be more financially responsible by not having all these TLs.

Thanks for the help!

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I don't know the ins and outs of your situation but you should NEVER talk to the IRS. Get a professional who has done offers in compromise preferably someone who worked for the IRS and knows exactly what to say and what not to say. You would be surprised how the turn of a phrase can make all the difference in the world. If you come across the right accountant/lawyer to work for you it is very possible to settle for 10 cents on the dollar.

[Anonymous]

You have no clue how great that would be, I'd actually feel like I had a life...the State of MN doesn't give a crap and I had no choice on the IRS, I had just left my job, should have sunk my $5k from 401 into taxes but bought equipment to start my own business, change in life course and got a job again because the reality is it takes longer than 6 months to gain clients  Anyway, I could tell this woman wanted to "see" my home so I welcomed it so she could see I definitely don't live lavishly.

I am waiting for response from both State & Fed to accept pymts of $75/mo but it won't ever really get me anywhere...currently only Fed has the lien...I was recently able to find a 2nd job a few nights a week during the weeks my kids are with their Dad, but with price of gas, high crappy auto loan pymt not finished until Nov. next year I don't really see an end.  I'm facing the fact that I'll most likely end up renting yet again, and I have to move into the town my kids attend school because driving them to school every day for two weeks a month is rough on the gas

If you know of any trusted people I could talk to it would be great because I'm finally doing the right thing, the right way for my taxes but they don't forgive a really good reason for past, and I don't regret being there for my kids

[Tuscani]

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beach123 wrote:

No, for whatever reason it isn't showing on TU.  Bad part is it shows on EQ, which is my lowest score I'm sure

I've gotten a judgement paid immediately, sent copy of the satisfaction and it was removed/cleared but now it's showing differently as of Fall 2006, and I cleared it up with all (3) in Nov 2005, have old CR reports that prove it as well.  (This was a JDB to which I know other than the LVNV I'll never be exposed to again because there are NO other old debts in my name).

I have the homebuyer class this week and can prove what I'm saying if it helps at all...any thoughts on maybe joining a credit union? 

Seriously, my life has done a 360 since divorce except those first few months and the tax thing

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Ok, I was just curious and it doesn't really matter as any mortgage lender will pull all three. I algree with smallfrys advise about consulting a tax pro. Credit Unions are good because they tend to be more lenient and willing to cater. Just keep your head up, you will get there. We are here for ya!

[Anonymous]

Tuscani - you made my Mother's Day!  Thank you.  My biggest push to keep moving is to gain security for two beautiful children...they so deserve it. 

They will be brought up to clearly understand how all these games with credit work, that I can say without a doubt!

[Tuscani]

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beach123 wrote:

You have no clue how great that would be, I'd actually feel like I had a life...the State of MN doesn't give a crap and I had no choice on the IRS, I had just left my job, should have sunk my $5k from 401 into taxes but bought equipment to start my own business, change in life course and got a job again because the reality is it takes longer than 6 months to gain clients  Anyway, I could tell this woman wanted to "see" my home so I welcomed it so she could see I definitely don't live lavishly.

I am waiting for response from both State & Fed to accept pymts of $75/mo but it won't ever really get me anywhere...currently only Fed has the lien...I was recently able to find a 2nd job a few nights a week during the weeks my kids are with their Dad, but with price of gas, high crappy auto loan pymt not finished until Nov. next year I don't really see an end.  I'm facing the fact that I'll most likely end up renting yet again, and I have to move into the town my kids attend school because driving them to school every day for two weeks a month is rough on the gas

If you know of any trusted people I could talk to it would be great because I'm finally doing the right thing, the right way for my taxes but they don't forgive a really good reason for past, and I don't regret being there for my kids

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I would just look under tax attorney in the yellow pages. There are several here in MN. You should be able to settle for WAY less than you owe.