Posted on: 04th May, 2009 01:14 pm
Hello,
Our family business has had a rough year this year because of the economy, and we had to choose between keeping the business alive and not paying our taxes, or paying our taxes and folding the business. My husband chose to delay paying our taxes (we have every intention of catching up when the economy improves). Unfortunately this means that the IRS is going to file a federal tax lien on us.
How will this impact our ability to get a mortgage in the future? Our credit is not great anyway (again, because of having to take out a lot of debt to support the business) but we do own a home and have never made a late payment on the mortgage. We were planning to relocate in about three years.
I know the lien stays on our credit report for 10 years. We plan to have it paid off within two. If we pay it off and we are able to keep our credit clean for three years, is there a chance we can get another mortgage loan when the time comes to relocate? Or does the very fact of that past lien (even if it has been paid) mean we're unlikely to ever get approved for a mortgage?
Thank you in advance.
Our family business has had a rough year this year because of the economy, and we had to choose between keeping the business alive and not paying our taxes, or paying our taxes and folding the business. My husband chose to delay paying our taxes (we have every intention of catching up when the economy improves). Unfortunately this means that the IRS is going to file a federal tax lien on us.
How will this impact our ability to get a mortgage in the future? Our credit is not great anyway (again, because of having to take out a lot of debt to support the business) but we do own a home and have never made a late payment on the mortgage. We were planning to relocate in about three years.
I know the lien stays on our credit report for 10 years. We plan to have it paid off within two. If we pay it off and we are able to keep our credit clean for three years, is there a chance we can get another mortgage loan when the time comes to relocate? Or does the very fact of that past lien (even if it has been paid) mean we're unlikely to ever get approved for a mortgage?
Thank you in advance.
As long as the tax lien is satisfied a lender will be willing to consider you for a loan. You should not have an issue as long as the lien is listed as satisfied when the lender pulls credit. Once lien is paid keep all documentation stating "Paid". I hope this helps...