Posted on: 05th Aug, 2010 09:32 pm
I have an IRS installment plan for back taxes. I'm in the second year. All payments current, no lien filed by IRS, no judgement. As such, nothing is mentioned on my credit report. My credit score is over 700 with no debt.
Two questions: 1. Should I answer the delinquent/defaulted federal obligations (taxes, student loans, etc.) question on the mortgage document as yes or no? 2. Since there is no lien/judgement, will there be a problem getting approved?
Thanks.
Two questions: 1. Should I answer the delinquent/defaulted federal obligations (taxes, student loans, etc.) question on the mortgage document as yes or no? 2. Since there is no lien/judgement, will there be a problem getting approved?
Thanks.
Though you're on a federal plan, you're actually delinquent on your taxes. Thus, you should report the delinquent/defaulted federal obligations as yes. As you're paying off the dues through a plan, there are chances that you would be able to get approved for a loan.
It is proper to disclose truthfully. Whatever you pay monthly will simply be included in your debt ratio. Mortgages require you have been paying 12 months or longer on time and you have been.
Thanks for the responses.