I just got hit with an IRS tax lien on my CR. Even though I was in the process of getting an installment plan in place with them. I am (or was) in the process of getting a home. I needed to get my credit score up a little more. I assume this is going to crush me. I was trying to go through FHA for the loan. Anyone know what the impact will be or what I can do to move forward on the loan??
Although scores are not a factor in FHA loans, you will need to pay that IRS obligation within a few days prior to closing. They will want to see a receipt for full payment. KK
You should be able to get your lien withdrawn. We were successful in doing so. Here's the thread in which the initial info we used was discussed. It's taken about 3 months for us to get the withdrawal. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=184878#post184878 Read the info carefully about the criteria which relates to lien withdrawal when an installment agreement is entered into. Ask for withdrawal of the notice of lien as a condition of your installment agreement. Contrary to some information you may see in the thread I posted here for you, a release and withdrawal are NOT the same thing. You do NOT want a RELEASE! A release indicates that the lien is no longer attached to your property. A release will allow property to be bought and sold, but it will remain on your credit report for 7 years after you pay the lien, and it is a major derogatory. It will hurt your scores badly! Obtaining a release is a last resort if there is just no other way, but it sounds like you should fall into one of the four groups that qualifies for withdrawal. Read the linked info carefully and you should find the tools you need to get you on your way. All the best with it! DemPooches
We are a month away from finishing up the buying of our new home. It is also FHA. They said the only thing that would stop us from getting it would be for a lien to be out there. Luckily there is not but it will stop you from completing your home buying experiance.
