Posted on: 17th Feb, 2011 03:50 pm
I owe the IRS $966 for taxes in 2007. I called the IRS and they told me the debt is in "not collectible" status and I only have to make payments voluntarily, but they are not pursuing collection of the debt. It's not a lien and doesn't show on my credit report. I'm wondering if this will prevent me from getting a USDA Rural Development guaranteed mortgage?
I called USDA and the lady told me she didn't think it would be a problem because they review credit report that lender provides and if it isn't on credit report and isn't a lien it shouldn't be a problem. I'm still nervous about taking her word for it because others say any federal debt will derail a government guaranteed loan. I'm scared to mention it to my lender because they may require me to pay the $966 and I don't have it available right now. Plus, the IRS isn't pursuing payment.
I called USDA and the lady told me she didn't think it would be a problem because they review credit report that lender provides and if it isn't on credit report and isn't a lien it shouldn't be a problem. I'm still nervous about taking her word for it because others say any federal debt will derail a government guaranteed loan. I'm scared to mention it to my lender because they may require me to pay the $966 and I don't have it available right now. Plus, the IRS isn't pursuing payment.
Have the money ready to pay it and let the underwriter decide - they will not deny you but may require it to be paid.
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