Tax Lien removal help

[Anonymous]

On July 26, 2006 a tax lien was filed with the county court on a real estate property that my wife and her now ex-husband owned.

They were going thru divorce and so my wife transfered ownership to her ex on June 28, 2005 (this is not reported in the divorce papers but I have the transfer of ownership letter my wife wrote).  Her ex then sold the property on June 29, 2005.

The town claims that the 2006 taxes billed and filed as a lien were my wife and her exe's responsiblility and therefore the lien is accurately placed against them and not the new owners (who acutally were the ones that paid the taxes in full and owned the proerty in 2006).

We have spoken with several people at the town office and they don't understand that even though the tax lien has been paid in full it still is being reported to the credit bereaus and negatively effecting my wife's credit scores.  Not to mention that it should never have been placed against my wife.

Back on July 21, 2007 her ex-husband received a letter (which we have a copy of) stating that the 2006 taxes have been paid in full and that "A discharge for the 2006 tax lien will be filed."  Now, 'discharge' does not mean 'vacate', correct?  So having the town 'discharge' the tax lien isn't enough to get it removed from her credit files, right?  I just emailed the lady we've spoken with multiple times at the town office again.  This needs to come off and they aren't budging!  The ONLY way to have this removed from her credit report is to have it vacated by the town, correct?

[Anonymous]

I'd deal with them in writing.  Since it seems that they're confused, I'd send them a direct dispute and I'd include a copy of the incorrect reporting in question as well as a copy of any proof you have of your case.  I'd do it CMRRR.

[Anonymous]

We've tried in writting a couple of times over the years with no luck.  They keep stating that it has been paid in full and that "This correspondence should be suffiecint information to provide to credit bureaus, banks, etc.".   That's a direct quote from the last letter they sent us...

They don't fully understand that we are directly disputing the fact this isn't even my wife's tax lien to begin with and that we want it vacated.  What is interesting is that the actual Tax Lien Certificate states that the tax lien is place for the 2005 taxes, and yet the town keeps stating that it is from the 2006 tax year...  If it is in fact from the 2005 tax year, my wife would in fact have been responsible for those taxes. 

[Anonymous]

I just got off the phone with the Registry of Deeds office that maintains the public record.  She stated that even if we had the court vacate the tax lien it will still remain on public record!  She doesn't know how to get it removed from public record.  She suggested I mail the discharge letter to the credit bureaus to see if they'll remove it from the file, but since it's public record I doubt that will get it deleted....

[Anonymous]

On July 1st, 2010, the direct dispute option came into play.  Since they're arguing with you about it, I would send a direct dispute.  Check out this link:

http://ficoforums.myfico.com/t5/General-Credit-Topics/Direct-Dispute-Process-is-now-law/td-p/688931

Here's an entry from RobertEG later in that thread outlining a basic way to word a direct dispute, but please read the thread for more info:

"10-09-2010 06:38 AM - last edited on 10-09-2010 07:43 AM

Here is a very simple, yet complete, sample direct dipute letter that, in my opinon, fully coplies with  the new rules:

Again, being a direct dispute, it should NOT be sent to a CRA.,  It is sent  directly to the party who posted the disputed information  to you credit repirt.

“This is a Notice of Direct Dispute with you, under the provisions of FCRA 623(a)(8)(D), of the accuracy of information you have posted to my credit file.

“In compliance with FCRA 623(a)(8)(D), and enacting regulations published at 74 Fed Reg 31484 (July  1, 2009), this Notice includes:

“Identification of the specific information being disputed:

            (specify the account number, and the specific information that iis related to the dipsuted informatiion

“Basis for the dispute:

            (how the reporting was inaccurate; based on any statutory or regulatory provisions?)

“Supporting documentation:

            (all documents that support your dispute; make sure to include,

             as part of your documentation, a copy of the portion of your

             recent credit report showing their reporting of the

             disputed information)

“Under the provisions of FCRA 623(a)(8)(E), you have the duty to review all of the information in this Notice of Dispute, to complete your investigation, and report back to me the results of your investigation, within 30-days of my Notice of Dispute..”"

[Anonymous]

Here's the issue with a direct dispute on in our case...  No one, not the town, not the court, not the registry of deeds are sending the information to the credit bureaus; the credit bureaus are finding it in public record...  No one is sending this information to the big 3, they're finding it.  The only way to get this removed is to get it removed from public record so that the big 3 can't find it when they do a search.  I haven't figured out a way to get it removed from public record yet.  Even the registry of deeds, at least the clerk I spoke with, can't remove it.  I'm trying to get the town to write a notarized letter stating that the tax lien was filed in error so that I can send it to the court, the registry of deeds and the credit bureaus.  I don't know what other approach to take.  I was thinking of seeing if we could get on the agenda during the town meeting with the board of selectmen and ask for this letter.

[Anonymous]

Sounds like you may want to look into a MoV letter.  You need to dispute with provider of the information - the CRA isn't looking for it, it's being reported to them by someone and you need to know who.  I'd still send a direct dispute to the address(es) listed on your reports, CMRRR.  I'd include the written response in a MoV if the direct dispute didn't work.  Others may have additional ideas.  If you do not receive a written response, I'd submit proof of delivery to the CRAs when asking for MoV.  

[Anonymous]

Sweet, thanks for the suggestion, wasn't aware of a MoV letter.  We have disputed this item with all 3 CRA's but it was verified.  We'll try anything at this point!  But don't we still need to prove that this tax lien was filed in error no matter what we do?

[Anonymous]

You want to have the strongest paper trail that you can get if you are trying to correct verified info with the CRAs.  I'm sure other people have more ideas, but that's what I'd try in your situation. 

[Anonymous]

Here is the town's reply to my email:

"In accordance with Maine law all properties are assessed on April 1st of each calendar year.  The owner(s) of record is determined by whoever owns the property as of April 1st.   In this instance the 2006 property taxes (covering the tax period of 7/1/2005 to 6/30/2006) were assessed and owner of record recorded on April 1, 2005.  Sarah did not transfer her ownership to Peter until June 28, 2005. Sarah & Peter were both owners of record on April 1, 2005 and any liens place on the property for the 2006 tax year, by law, had to be placed in both names.    Unfortunately there is nothing the Town can do to change that.  The discharge record will clear up the lien issue and I believe that these are usually permanently removed from credit records after 7 years.   Please let me know if you have any further questions."

I just sent them a GW letter to see if they'll give us the letter...