Tax Lien

[Durtyd29]

Thanks for that info MattH.  My mortgage is through BOA who pays my property taxes because it is included in my monthly mortage payment so there shouldn't have been any reason for it to be late, right?  My mortgage was sold to BOA after my former mortgage company Taylor, Bean, and Whitaker took a dump.  I've been with them since Oct of 09 and the property taxes where due on Nov 09.  Should the responsibility have fell on TB&W or BOA?  Looking for some direction to reticfy this issue.  All insight is welcomed!

[Anonymous]

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@MattH wrote:

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@Anonymous wrote:

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@Anonymous wrote:

If you can get them to remove the lien from your credit, that will be a HUGE help with your credit.  Having any kind of public records, especially federal or state tax liens, is highly frowned upon by lenders.  If you can't get it off, that sucker is going to ding your credit for a long while.

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Getting them to remove lien is unlikely.  Search "tax lien" in the forums and you'll see many stories.

And, yes, it will ding your credit, for sure, but I think the effect diminishes with time.

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Depending on many factors, if a late mortgage payment is due to failure by the lender to handle escrow funds correctly the homeowner may have grounds for a lawsuit against the mortgage company if the damaged credit has financial costs.  I strongly recommend original poster speak with a local lawyer as soon as possible because this sort of situation is extremely dependent on specific facts and local laws.

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I misread the OP.  I think Matt has a point.  In general, liens are very difficult to get removed, I think.  There is a possibility that this one could be viewed as filed in error and be removed.  But that is may end up being a challenge. 

[Anonymous]

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@MattH wrote:

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@Anonymous wrote:

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@Anonymous wrote:

If you can get them to remove the lien from your credit, that will be a HUGE help with your credit.  Having any kind of public records, especially federal or state tax liens, is highly frowned upon by lenders.  If you can't get it off, that sucker is going to ding your credit for a long while.

---

Getting them to remove lien is unlikely.  Search "tax lien" in the forums and you'll see many stories.

And, yes, it will ding your credit, for sure, but I think the effect diminishes with time.

---

Depending on many factors, if a late mortgage payment is due to failure by the lender to handle escrow funds correctly the homeowner may have grounds for a lawsuit against the mortgage company if the damaged credit has financial costs.  I strongly recommend original poster speak with a local lawyer as soon as possible because this sort of situation is extremely dependent on specific facts and local laws.

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Absolutely correct.  If one is required to maintain an escrow account, the account manager is responsible to see that the amounts are dispursed in a tinely fashion.

Usually what will happen is the bank will contact the state and get the issue resolved for you.  If not, take them to court.  They were negligent and you suffered damages.  Pretty much open and shut.

[MattH]

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@Anonymous wrote:

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@MattH wrote:

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@Anonymous wrote:

---

@Anonymous wrote:

If you can get them to remove the lien from your credit, that will be a HUGE help with your credit.  Having any kind of public records, especially federal or state tax liens, is highly frowned upon by lenders.  If you can't get it off, that sucker is going to ding your credit for a long while.

---

Getting them to remove lien is unlikely.  Search "tax lien" in the forums and you'll see many stories.

And, yes, it will ding your credit, for sure, but I think the effect diminishes with time.

---

Depending on many factors, if a late mortgage payment is due to failure by the lender to handle escrow funds correctly the homeowner may have grounds for a lawsuit against the mortgage company if the damaged credit has financial costs.  I strongly recommend original poster speak with a local lawyer as soon as possible because this sort of situation is extremely dependent on specific facts and local laws.

---

Absolutely correct.  If one is required to maintain an escrow account, the account manager is responsible to see that the amounts are dispursed in a tinely fashion.

Usually what will happen is the bank will contact the state and get the issue resolved for you.  If not, take them to court.  They were negligent and you suffered damages.  Pretty much open and shut.

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And all who read this should be sure to check with their local authorities to confirm that their mortgage company has paid them on time.

[Durtyd29]

Update.  I've received a letter from the tax commission stating that it's been satisfied.  Are they going to send the letter out the the CRA?  It only showed up on my TU CR, or should I just send a copy of the letter to TU myself?

[Anonymous]

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@Durtyd29 wrote:

Update.  I've received a letter from the tax commission stating that it's been satisfied.  Are they going to send the letter out the the CRA?  It only showed up on my TU CR, or should I just send a copy of the letter to TU myself?

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Satisfying it will not remove it from your CR.  It will now stay 7 years from the date paid.

Since this is not your doing but a screwup by your mortgage company, in my opinion, it should not have been filed against you.  At least not without some sort of notification making you aware that the taxes were unpaid and giving you a chance to rectify it.  You depended on your mortgage company to make the timely payments and they failed.  With that said, I think you should look into what MattH has said.  Sue them if need be.

[Anonymous]

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@Anonymous wrote:

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@Durtyd29 wrote:

Update.  I've received a letter from the tax commission stating that it's been satisfied.  Are they going to send the letter out the the CRA?  It only showed up on my TU CR, or should I just send a copy of the letter to TU myself?

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Satisfying it will not remove it from your CR.  It will now stay 7 years from the date paid.

Since this is not your doing but a screwup by your mortgage company, in my opinion, it should not have been filed against you.  At least not without some sort of notification making you aware that the taxes were unpaid and giving you a chance to rectify it.  You depended on your mortgage company to make the timely payments and they failed.  With that said, I think you should look into what MattH has said.  Sue them if need be.

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Exactly.

The company or individuals who manage your escrow account were negligent.  I'd write them a letter and remember to mention that you are willing to take legal action should they not remedy the situation to your complete satisfaction. 

Key words:  Negligence & Breach of Fiduciary Trust

BoFT, if they are somewhat literate, should send chills down their spine and place them in major butt-kissing mode.