Tax Lien issues prior to purchasing

[slund5499]

If unpaid state tax liens are successfully removed from credit reports, can an individual still obtain financing? Where in the purchasing process will the public record search occur that would reveal the unpaid tax liens; even though they are no longer reporting on credit reports (TU, EX, EQ).

Thanks

[StartingOver10]

The buyer's SS is required at time of application and the title info is also required.  The processor orders the title info and supplies the buyer ss info within a week or so of application IME. There may be a lag time for when the title co starts running the buyers SS for liens and judgments -but it should be sometime within the first 2 weeks of contract signing from what I have seen in my area.

[Lemmus]

...are they still showing on your public records? ...depending on the state, tax liens may expire after 10/20 years and are no longer reportable or collectible whether paid or not ...iirc, CA/IO/WV are among them ...ymmv

[slund5499]

They are still showing on TU credit report. They are still unpaid and I believe they are still public record information. They were filed in 2011 and 2012.

[StartingOver10]

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@slund5499 wrote:

They are still showing on TU credit report. They are still unpaid and I believe they are still public record information. They were filed in 2011 and 2012.

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These are fairly new tax liens. You can buy with tax liens, but you need to be on a payment plan. Some lenders like to see 2 or 3 payments made on your payment plan before they will accept it - but there is no hard and fast rule as to how many payments you need to make before you get approved. It is lender specific.  Better to make a payment plan and get them paid than hope that they won't collect in 20 years IMO.

[slund5499]

Last balanced owed total $22K (state only). I am working with a tax attorney that will re-file the old taxes and work on a settlement offer for both (federal and State). Hope we get it reduced (penalties and intrest) that we can enter into an Offer in Compromise or a monthly oayment plan. Don't know what balance is owed to IRS. They just take my returns every year and apply to balances owed.

[Lemmus]

...from long and bitter experience with the IRS, don't hide your head in the sand ...its better to know and act on that knowledge rather than not know and let them keep on piling on increasingly usurious penalties and interest ...I know it hurts but it will hurt a lot less now than it will later if you let it go ...hth

[Revelate]

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@slund5499 wrote:

Last balanced owed total $22K (state only). I am working with a tax attorney that will re-file the old taxes and work on a settlement offer for both (federal and State). Hope we get it reduced (penalties and intrest) that we can enter into an Offer in Compromise or a monthly oayment plan. Don't know what balance is owed to IRS. They just take my returns every year and apply to balances owed.

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You should get your tax record from IRS; attorney will have to do this anyway to prepare a legit OIC/IA and you should get a copy too.  Admittedly the re-file may fix a non-trivial part of that.

To Lemmus's point, hiding "worked" for me somewhat, but it also delayed my home purchase by half a decade.  Looking back across my life that may be the only thing I can cannot simply state "life would've been different, it may not have been better" on.  Think my life would be better in several ways had I not had that issue.

[Anonymous]

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@slund5499 wrote:

If unpaid state tax liens are successfully removed from credit reports, can an individual still obtain financing? Where in the purchasing process will the public record search occur that would reveal the unpaid tax liens; even though they are no longer reporting on credit reports (TU, EX, EQ).

Thanks

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The application itself will reveal the unpaid tax liens. One of the questions asked on the application is whether or not you have judgements or liens. You do, so they are going to find out as soon as you fill out the application. Unless you plan to lie, which I do not recommend.