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  1. #1
    louise is offline Newbie
    Join Date
    Apr 2002
    Posts
    8
    Long story short, we owe a great deal in back taxes. I don't know the exact figure, but I'm estimating around $20,000.

    We've had a tax lein on our credit for several years now which makes it nearly impossible to borrow any money.

    However, we did get a car loan last August 2001 with extremely high interest...and we did finally secure a mortgage on our house...again, with a high interest rate. Both of these took a great deal of work on our part.

    Now, we really want to get this IRS bill taken care of but obviously don't have the money. We've got some other little bills we'd like to have taken care of as well. Does anyone know any one who will lend us money to pay the IRS?

    We don't want to make monthy payments to the IRS....the lein will not come off our credit that way. Only if it's paid in full will they take the lein off. We'd like to get it off so we can refinance the car and the house to get lower rates.

    Anyone???

  2.  
  3. #2
    TomJones is offline Senior Member
    Join Date
    Jun 2002
    Posts
    223

    Re: How can I get a loan to pay IRS?

    Most banks would grant you a personal loan to do this kind of thing, *IF* you met their credit criteria. I guess your Catch-22 is that until the lien is removed, you will meet the credit criteria of very few banks.
    One suggestion I have, which is devious, would be to find out what credit bureau the bank you're applying with pulls. For instance, my bank *always* uses Equifax. Subscribe to credit monitoring on that credit bureau.
    Go ahead and dispute the lien. Once they're investigating it (you'll see a note that the credit bureau looked up your credit report, on the day that they investigate your dispute) call the credit bureau and DEMAND that they mark in dispute on that trade line.
    The next day, when it shows up in dispute, run, do not walk, to the bank. While the item is not calculated into your score, attempt to get credit. During the period where they investigate, your score may be artificially inflated by as much as 50-100 points.
    TomJones
    654 Equifax FICO October 2004

  4. #3
    DemPooches is offline Senior Member
    Join Date
    Jun 2002
    Posts
    797

    Re: How can I get a loan to pay IRS?

    Originally posted by louise
    Long story short, we owe a great deal in back taxes. I don't know the exact figure, but I'm estimating around $20,000.

    We've had a tax lein on our credit for several years now which makes it nearly impossible to borrow any money.

    However, we did get a car loan last August 2001 with extremely high interest...and we did finally secure a mortgage on our house...again, with a high interest rate. Both of these took a great deal of work on our part.

    Now, we really want to get this IRS bill taken care of but obviously don't have the money. We've got some other little bills we'd like to have taken care of as well. Does anyone know any one who will lend us money to pay the IRS?

    We don't want to make monthy payments to the IRS....the lein will not come off our credit that way. Only if it's paid in full will they take the lein off. We'd like to get it off so we can refinance the car and the house to get lower rates.

    Anyone???
    Hi Louise,

    Here are a couple of threads in which this was discussed in great length a few months ago.

    http://consumers.creditnet.com/strai...109#post185109

    http://consumers.creditnet.com/strai...ien#post192489

    There was one poster who didn't seem to understand the difference in a "release" of a lien and a "withdrawal" of a lien and that is a very important distinction in this situation. Don't let that part of the discussion confuse you.

    I WAS SUCCESSFUL IN GETTING 2 UNPAID TAX LIENS WITHDRAWN AND REMOVED ENTIRELY FROM ALL THREE CREDIT REPORTS!!

    They were withdrawn as a means of facilitating collection. The deal was, the IRS would withdraw them, then we would obtain financing to pay them in full within 60 days. (The agreement was also that if we didn't pay they would go right back on.)

    They did their part, we did our part, and IRS liens are now a part of our past.

    Now, ours were for a smaller amount and no doubt that helped. But these new regulations are there to help people. In our case, we were able to get financing once the liens were gone. If you have good credit otherwise, you might go talk to your banker and see if you would be able to get a loan for the $20K if the liens were gone. Ask him to put it in writing for you and that might be a way to get them withdrawn the same way we did.

    If you will spend some time studying the info in these threads (and be sure to go to the linked info to read the actual IRS regs involved) you will see that you can also get a lien withdrawn by entering into an installment agreement with the IRS. You just have to make sure that the installement agreement doesn't include any language that prevents the withdrawal.

    I can't caution you enough though, as you go through this info, don't get confused between a release and a withdrawal. A release means nothing but the fact that the IRS isn't still attaching whatever you have. From a credit standpoint, a released lien is still a credit nightmare. A withdrawn lien is like it was never there....it simply disappears. A released lien will remain on your credit report for 7 years after the date paid. You don't want that.

    You can get this done. It will take some study and then some patience (it took us from June till Sept) , but I am here to tell you it CAN be done.

    DemPooches

  5. #4
    BumbleBee is offline Senior Member
    Join Date
    Oct 2002
    Posts
    128

    Re: How can I get a loan to pay IRS?

    Louise,

    Have you tried negotiating a settlement with the IRS? According to my tax accountant husband, many times they will settle for 50 cents or less on the dollar. There is some paperwork involved but they are usually pretty lenient in their settlements. I think that does have to be a lump sum, but I think it would be much easier to get an unsecured loan for $10,000 than $20,000. You will need to get the approval on the loan first, though, before approaching the IRS because there is a time limit for getting the payment in. So try for the $20,000 first and if the bank won't go for that, see what they will go for, then try to settle with the IRS for that, but try to keep it to 50% or less. Of course, if you get approved for the whole $20,000, only get what you need for the settlement!

    If you are not successful in getting a loan, though, go ahead and make payments! At least, you will be making some progress on it. Or you could set that money aside since you haven't been making payments, anyway, until you have enough to offer a settlement.
    BumbleBee

    Taking flight in search of sweet nectar

    TU FAKO 679 DH 548
    EQ 649 DH 583
    EX ??? DH 588

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