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bluekango · Joined: 27 Jul 2011 Posts: 1 1.44 Dollars($)

Hi can I get a fha loan if I just paid off my tax lien....I got approved for an fha loan and told them my situation....The underwriter told me to pay off the lien in which I have done...Now she telling me I need to get the release from the IRS I am suppose to close next week and she is telling me the lender wants this form before they will close.....IRS send a form 30 days after the debt is paid off...What can I do at this point ....We don't want to lose out on the house nor our earnest money....

Posted: Wed Jul 27, 2011 8:52 pm Post subject: the lien

I would suggest to pay of the lien and get something in writing on a IRS letter head, even if it is unofficial that will state that you are lieu of paying off the lien. If you don't supply something you will not close on your new loan. this is a tough one.

jameshogg · Posted: Wed Jul 27, 2011 9:56 pm Post subject:

Hi bluekango,

It is true that you will have to submit the lien release letter given to you by the IRS before you can qualify for a loan. Unless you submit this document, I don't think the underwriter will close the loan.

Thanks

sabrinatoss · Posted: Thu Jul 28, 2011 1:42 am Post subject: hi bluekango!

To help you on submitting IRS letter and on other procedures that you have to process you need to consult to an expert that will guide you not to lose out both your money and house.

gmakerley · Posted: Thu Jul 28, 2011 10:27 am Post subject:

Yeah, by all means ask an expert.

You've done what you wanted to do, you've done what you've been advised to do, and here we are.

I don't know if the IRS is willing and/or able to expedite the release, but you can certainly document that you've paid that lien off, I presume. A title company ought to be able to take that proof and run with it, eliminating the need for the release itself. The lender ought to have sufficient savvy to realize that a paid lien is just that.

Furthermore, if you can do so, you ought to seek an extension on the time frame in which you must close. You ought not to lose your earnest money deposit, since a denial of your loan application ordinarily protects you from losing that. You obviously don't want a denial, of course...fight with the lender and ask them to check with the title company to determine if they can insure regardless of the current non-existence of the release.

greg12 · Joined: 30 Dec 2010 Posts: 27 6.20 Dollars($)

Your IRS lien creates a cloud on title and even if your loan is approved you won't be able to get title insurance until the lien is released.

Without title insurance you won't be able to close. Have your lender work with the title company and see what it will take for them insure the title.

Good Luck!

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