Posted on: 04th Aug, 2009 08:39 am
I have applied for a home mortage and have a pre-qualification letter. The problem is I have a 9,000 tax lien. I have never owned any property.
I am on a payment plan and the only reason the tax lien was placed was because I received false information from a tax advisor to to an offer in setttlement which lets the IRS place a lien on your credit immediately.
Can I still get approved for this loan or will I run into problems with the bank at some point. We sign the agreement of sale at the end of this week and the owner is asking for some earnest up front money for escrow.
I am on a payment plan and the only reason the tax lien was placed was because I received false information from a tax advisor to to an offer in setttlement which lets the IRS place a lien on your credit immediately.
Can I still get approved for this loan or will I run into problems with the bank at some point. We sign the agreement of sale at the end of this week and the owner is asking for some earnest up front money for escrow.
sporty, you already have been prequalified, right? have you run this topic by the lender in question? did they not take this tax lien into account when they gave you the prequalification letter?
it strikes me as peculiar that you wouldn't already have received an answer to this question - long before you are about to write a check for earnest money and sign a contract to purchase.
what happened with your lender?
it strikes me as peculiar that you wouldn't already have received an answer to this question - long before you are about to write a check for earnest money and sign a contract to purchase.
what happened with your lender?
oh...and i'm sorry because i didn't really provide any answer. in my experience, you'll be asked to pay the lien in full; though there are lenders who won't require that, i believe.
George always provides sound answers and advice.
You apparently know you have a tax lien. It will appear as such in one of two places or both or neither.
It may appear on your credit report---in which case the lender who gave you the prequalification should know about it, unless they simply missed it.
It may appear in the title search.
If it is in the title search, I doubt that any lender will lend until it is resolved. Either need twelve month payment history showing being repaid or it will need to be dismissed or paid (satisfied).
If it appears on the credit report, it does not mean it will appear on title. Sometimes that takes a while--a year or more. If that is the case, a lender may lend, but, not usually becasue they figure it will end up on title sometime soon in the future.
As George notes, only the lender can tell you. Call the lender and tell them you have a tax lien and see what they say.
You apparently know you have a tax lien. It will appear as such in one of two places or both or neither.
It may appear on your credit report---in which case the lender who gave you the prequalification should know about it, unless they simply missed it.
It may appear in the title search.
If it is in the title search, I doubt that any lender will lend until it is resolved. Either need twelve month payment history showing being repaid or it will need to be dismissed or paid (satisfied).
If it appears on the credit report, it does not mean it will appear on title. Sometimes that takes a while--a year or more. If that is the case, a lender may lend, but, not usually becasue they figure it will end up on title sometime soon in the future.
As George notes, only the lender can tell you. Call the lender and tell them you have a tax lien and see what they say.
