**Update #3** - CLOSED today 12/20, SO HAPPY!!! Cautiously Optimistic

[Anonymous]

I did have a bunch of federal and state taxes included in my BK7.  100% sure, as they are listed in the BK documents I have on hand that were filed in the court system in 2011.

I also had 4 tax liens on my credit report.....2 federal and 2 state.  All 4 either showed "paid" or "released", but they were supposed to stay on there for a period of time.  But then the bureaus stopped reporting them across the board....and they were removed. 

[NC_Mtg_Loaner]

Congrats.

Seems to me that you'll be fine.  I am surprised that your credit score is as low as you stated but it's possible that you are getting ready to receive a reasonable 5-10% spike up in score once the most recent derogatory payments become > 24 months old as long as you keep your utilization ratios optimized. 

[Anonymous]

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@NC_Mtg_LoanerI do beleive that my score is so low because I have applied for and received approximately 4 new credit cards this year.  Two as recently as two months ago. Also, I have inquires from car loans, credit cards, two different mortgage companies and credit union. 

If I have any outstanding balances showing from the tax years they are looking into, would I be able to simply pay them and remain on track to close?  Or do those balances showing up automatically deny me the loan?  I do not think that I have balances, but it is possible I suppose. 

 wrote:

Congrats.

Seems to me that you'll be fine.  I am surprised that your credit score is as low as you stated but it's possible that you are getting ready to receive a reasonable 5-10% spike up in score once the most recent derogatory payments become > 24 months old as long as you keep your utilization ratios optimized. 

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[CreditInspired]

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@Anonymous wrote:

I did have a bunch of federal and state taxes included in my BK7.  100% sure, as they are listed in the BK documents I have on hand that were filed in the court system in 2011.

I also had 4 tax liens on my credit report.....2 federal and 2 state.  All 4 either showed "paid" or "released", but they were supposed to stay on there for a period of time.  But then the bureaus stopped reporting them across the board....and they were removed. 

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I think you're in good shape.

[Anonymous]

Ok so, is my understanding correct that, if I have any tax balances and I pay them, I should be good to go?

I'm sure you all know the mortgage industry much better than I.  My loan originator has been MIA for over a week.

I'm just trying to prepare myself for the conversation I am sure I will have with her.

Thanks 

[Anonymous]

Any word yet?

[Anonymous]

Today, I provided my loan processor with lien releases that I received from the IRS for all of the tax years they asked about.  Hoping this satisfies their needs, but I do not know yet.  I have fulfilled all other conditions that have been presented to me so far.

Just awaiting further instruction on what else I may need to do.  I do know that they want my Nov and Dec bank statements....but those obviously are not ready yet. 

So, I wait.  And it is VERY hard.  Being a first tiem home buyer and not knowing how sideways this could go, makes for a seriously painful and anxious time. Ughhh.

[Anonymous]

Curious to follow what happens with your loan.  I am in a very similar situation, except mine is a judgment rather than a tax lien, but it has been satisfied as well.  I am waiting on conditional approval, and it really sucks.  It's only been five days....feels longer.

[Anonymous]

**UPDATE**

As of yesterday afternoon, my mortgage loan is back to the underwriter for final processing.

According to my loan processor, I have provided the proper paperwork to clear all conditions given initially and should have an answer by tomorrow or Friday.  Also, per my loan processor, I asked how he felt about my file and receiving final approval. He indicated that he felt very good about it.

I am so extremely nervous right now.  This is a major step in my life that....a few years ago....I would have never thought possible.  I changed my financial outlook and my maturity in regards to my finances about two years ago and......here I am.....hoping to close on the single biggest investment opportunity I will ever make.

I will give another update when I hear more.

Stay tuned!!!  :-)

[Anonymous]

**UPDATE AGAIN**

My mortgage loan is back from the underwriter and I just cannot seem to get past the past tax issues.  I do not understand why either.

According to my loan processor, the underwriter is asking for additional proof that I do not owe taxes.  Just to remind you all, I filed BK7 in 2011.  Several years of back taxes were included in the BK7.  The back taxes were created due to not properly running the financial side of a business, which I no longer have. As a result, tax liens were placed against me.  Fast forward to today.....I have multiple tax lien releases in hand, which I have already provided to the underwriter....stating that the tax lien years they have inquired about (I actually gave them more than they asked for), have been released and no longer a liability or no longer could attach to my mortgage.  Yet, the underwriter wants additional proof.  What other proof am I suppsoed to provide?!?!  A tax lien release IS the proof that the taxes are no longer an issue.  I am at a loss as to what I need to do now.  I am fearful that, I cannot provide a specific document as to those taxes not being a liability anymore.  Everything I research and see, states that the lien release is the only real proof......but the underwriter wants additional proof. 

Everything else is perfect with my loan, just need Nov and Dec bank statements and proof of funds to close, which I will easily have......but I am now very worried that I will get denied, simply because I cannot provide the "additional" proof they are asking for. 

This is SOOOOO frustrating.  Buying a house is supposed to be one of the most memorable and happy financial decisions in a persons life, yet the financing side, if you do not have a squeaky clean credit profile, is excruciating, to the point of my wife and I being very upset and stressed to the max.  We simply do not know what to do now.  My loan processor is confused too.  He is running it up the chain to his operations manager.