This question was posed to me a few times by WNY Home Buyers so I was prompted to research it and then I decided to write about it and therefore I can give all WNY Homebuyers an answer to this question. Here is what I know from the jump. Just about every lender will want to see that the lien has been paid off completely.
If you have been on a payment plan for at least 6 months I have seen some lenders make an exception with enough compensating factors. From my research I am of the opinion, as many others are as well, that a borrower should take care of their tax obligation with the IRS before they ask a lender to evaluate them as a good risk.
In addition, you MUST have a payment plan established and it’s always helpful if you can show you have been paying it for at least 6 months. This is a non negotiable. So make sure you have the payment plan letter from the IRS.
Every borrower's situation is unique and every borrower's credit history must be analyzed on a case by case basis! You need the advice of a mortgage lender who can assist you and analyze your entire credit report to see where you stand financially. Your income, expenses and past debt including the tax lien must be taken into consideration and a lender can advise you whether you have to pay the tax lien or not. A tax professional will also be able to help you "Settle", your tax lien perhaps for a percentage of the lien.
So therefore find a lender that you trust and sit down with that person and they will go over everything you need to do. If you are looking for a lender, do some research online, talk to your bank, or talk to a Realtor you trust that can give you some lenders to choose from. ( Remember)
You’re not alone
Tens of thousands of Americans have damaged their credit ratings. They’ve misused or abused their credit cards or prolonged periods of illness or unemployment have engulfed them in financial distress. Whatever the reason, they suffer from having tax liens and bad credit, and must find a way to repair it to return to a normal life. If you’re among this group, don’t despair. Its hard work to rebuild your credit rating, but it can be done. “First you need to understand how credit works and then you need a plan. You may want to refer back to an earlier article What to do when your credits isn't the best?
Please fill free to leave a comment at the bottom of this page and start a discussion and I will respond as soon as I can or you can always ask a question from the Q&A box at the top of the page.
Tens of thousands of Americans have damaged their credit ratings. They’ve misused or abused their credit cards or prolonged periods of illness or unemployment have engulfed them in financial distress. Whatever the reason, they suffer from having tax liens and bad credit, and must find a way to repair it to return to a normal life. If you’re among this group, don’t despair. Its hard work to rebuild your credit rating, but it can be done. “First you need to understand how credit works and then you need a plan. You may want to refer back to an earlier article What to do when your credits isn't the best?
Please fill free to leave a comment at the bottom of this page and start a discussion and I will respond as soon as I can or you can always ask a question from the Q&A box at the top of the page.
Mark Key
RealtyUSA.com
3830 Union RD Cheektowaga NY,14225
716-603-8649 or e-mail mkey@realtyusa.com
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