Posted on: 09th Jul, 2010 09:24 am
Hello I just received a tax lien against me and have made arrgangements to pay them off, i was preapproved by a lender to purchase my home and have brought my credit score above, would this hinder me from getting a mortgage? The company i was preapproved by would not accept the 785 Form which clearly states that the mortgage or trust of deed would automatically come before the federal tax lien. Are there any companies out there willing to work with this type of situation?
Obtaining a mortgage with a tax lien is a higher risk situation, it appears the lender you went to just doesn't want to deal with this risk... however there are lenders out there that will be OK with it, just need to keep trying. Be prepared with the IRS 785 form along with the details of your payment arrangement, it also helps if you have had at least a few on time payments already, but that may not be possible if you just received it.
I have a federal tax lien that runs out of time in March the statute of limitations. I have paid off $12,000 in state taxes. My credit score is 591. My wife and I have over $110,000 in yearly income with minimal debt. I have one car payment and 2 credit cards with less than $1500 in debt. I paid off one car early from citi financial auto. Can I get approved?
Tony, 591 isn't a pretty score, and that's going to hamper you in trying to obtain a new mortgage. I am not conversant as you seem to be about the statute of limitations, so I'll take your word for it that the lien will be removed in the spring. In order to boost your score, it would be a profitable exercise to reduce your credit card debt to as low as possible - zero dollars if you can. Don't go applying for any credit for a while, keep paying whatever it is that you currently have on a timely basis and sit back and wait for your score to improve. You'll be penalized for a low score and most lenders won't even look at you.
