Can I get a new mortgage w/a Tax Lien?

Question

Help! Is it possible to get a new mortgage with a tax lien on credit file?

We make over $300k a year and are coming out of a financial mess we got in w/a bad real estate market in Colorado. We are back on our feet and credit scores are coming up, no debt etc.

We are ready for new home purchase but now have the tax lien on our credit file.

Is there anyway we can get the tax lien rolled into a new mortgage? If yes, how do we find a lender who will do this? Our income is 100% verifiable and we are already living in the house. The owner let us do an extended close to end of October.

We need to get this done asap!

Thanks!
Josh

Thanks for the quick ans! The issue we are just renting in the current house so I don't think we can do a refinance?

Would also be interested in a lease/purchase for up to 12 months if we can find an investor who will do it? We have already put down $10k in earnest.

Answer 1

On a refinance, yes, this can be done. In fact, it's going to be a condition of the loan in all probability.

Just talk to some lenders. I recommend you speak to no less than three before choosing one. Talk to as many as you have the stamina for. Start the conversation with "We want to refinance." and then see what they do next. Reject any lender representative that tells you anything before asking you questions.

Answer 2

Josh,

If you make over $300k - why aren't you paying off the tax lien first? I believe you are saying you are paying in the installment plan.

I do not know of a lender that I would want to do business with that will give you a mortgage while you still have a tax lien.

You already put $10,000 down on a property - and I suggest you find a good tax lawyer to make sure your interests are being followed. Also make sure you are getting a clear title on your property with the proper title searches and title insurance.

Something is wrong with this picture if you both make over $300,000 and you only saved $10,000 to put down on the property and have not paid off the tax lien. You are still paying interest and penalties while you owe the tax. They are ongoing.

I think you need to get a copy of your credit report from the 3 credit agencies (transamerica, experian, etc.).

Also - perhaps my best suggestion is to request information from FHA - and see if they will give you a fixed loan with a tax lien that exists.
The fixed loan (25 or 30 years) will give you the most stability.
Also check with the bank or credit union where you do your checking and saving.

GOD bless us always.
MBA-Boston Univ.
CPA-retired

Answer 3

Try this

http://www.topamericanmortgage.blogspot.com

Its good