My husband and i went to the bank a month ago to get pre approved for a home loan. All was good with our scores and our credit reports so we put a bid in on a house. Now we found out through certified mail that we have a 10,000 federal tax lien. My question....since this is not on our credit report yet, will we be able to close on the house with no troubles? It is on record at the county recorders office, but like I said, it doesn't show any liens of any sort on the credit report.
2007-02-28 11:26:10 · 4 answers · asked by larann78 2 in Business & Finance ➔ Credit
Is this a legitimate lien? or a screw up? It will definitely mess you up before closing if you don't get the issue resolved. Get on this now so that if you do owe this money you can negotiate a payment plan and get the situation resolved before your closing falls through.
2007-02-28 11:38:56 · answer #1 · answered by psycho-cook 4 · 0⤊ 0⤋
IBest case scenario: The bank doesn't find out about it, closing goes smoothly, you contact the IRS and take care of the lien. Worst case scenario: The IRS will find out that you now have something they can attach that tax lien to. You will have a certain amount of time to pay off the lien or lose your house. The IRS will take their cut, the bank will get the rest to satisfy the mortgage. If you still owe any money to the bank, they will come after you, through the courts if necessary, for the remainder. They may also find out that you knew about the lien and didn't disclose it before closing, thereby creating a fraud on your part.
2007-02-28 11:38:36 · answer #2 · answered by Brian G 6 · 0⤊ 0⤋
When the bank orders title work on the property the tax lien is going to show up under public record, the tax lien will have to be paid or you don't get to buy the house. The reason being the tax lien will take first lien position and the mortgage will take second lien position. No bank or financial institution want to take second lien position to the IRS. If it is a Fannie Mae or Freddie Mac loan the loan will be denied unless the tax lien is paid.
2007-02-28 14:06:02 · answer #3 · answered by Paul 2 · 1⤊ 0⤋
IBest case undertaking: The economic company does not detect out approximately it, suited is going somewhat, you touch the IRS and look after the lien. Worst case undertaking: The IRS will detect out which you on the instant have something they might connect that tax lien to. you have gotten a different quantity of time to pay off the lien or lose your residing house. The IRS will take their decrease returned, the economic company gets something to fulfill the own loan. in case you even however owe any money to the economic company, they'll come once you, interior the direction of the courts if mandatory, for something. they might additionally detect out which you knew with connection with the lien and did now not exhibit it until now suited, thereby bobbing up a fraud on your section.
2016-10-16 23:37:08 · answer #4 · answered by console 4 · 0⤊ 0⤋