TAX LIEN

[Anonymous]

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@Anonymous wrote:
i hope it works too!
you mentioned that once it get the letter from the state....you went to the county clerk and showed them that it was paid? did you do that just to be safe? is that something that has to be done...i would think that if the state knows..then the county probably does too.

my lien...once i found out i paid for it.
is it going to hurt my FICO if i have a lien on there....but it's paid for?

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Some states (and the person you're replying to may be in different state than you, and therefore have different procedures) require that the lien be officially released. By that, I mean that a Release Order be filed with the courts once payment's been made.

Some states don't require that you go through that nutroll. YMMV.

FICO rates tax liens paid and unpaid equally. The big deal, though, is that under manual review, it looks better. Especially if you're asking for a reconsideration!!

[rodney0126]

Yeah, I took it just to be safe. I really didn't know if they needed to make a copy of it or if the IRS sent them one. It was a very hefty lien, so I wanted to make sure.

My lien is over two years old and when I applied for my bank's credit card the loan officer let me see my report and told me that the lien, since it was over 2 years old, was just a small hit to my score. As someone else mentioned...it does look alot better if it shows to be paid if you go to take out a big loan or mortgage.

[rodney0126]

Well....(an update)

I tried the things on here, in regards to getting a federal tax lien off. I disputed with all 3 agencies and said "paid--agreed to delete" and it didn't work. It is paid off and they DID update it, but they didn't take it off. I did find out something from the IRS.....I probably could have had them do a "tax lien withdrawal" before it was released. The lady at the IRS told me that's like it never happened. I assume (but didn't ask) that the credit bureaus would have removed it then. Started out with about 40k in debt, got it down to about 2k and then they sent me the release. One of the criteria for the "withdrawal" is if it's in the best interest of the tax payer AND the IRS and another one is if it will expedite the payment of the debt. For those who have one and are getting close to paying it off....I'd try to get a lien withdrawal as opposed to a release if getting it off your credit report is a priority. You can go to the IRS website to find out more.

Guess I'll try again around December when the IRS is busy...but the recorded message says they don't give out any info to the credit bureaus anyway...I believe the bureaus check with the county recorder's office, but I'm not sure. I'm going there next to find out what I can.