Question: Can i qualify for a home loan with a fed tax lien?

(Posted by: chris c on 2010-03-10 09:39:09)

I have a Federal tax lien I have been paying on for 1 year. Is it possible to purchase a home under these circumstances? My credit is in the mid 600s.

Posted by: Janet P on 2010-03-10, 09:48:15

No, you have to pay it before you can purchase,

Posted by: golferwhoworks on 2010-03-10, 09:44:55

No as right now it is a judgment and not a lien. The day you buy it becomes a lien and no underwriter in this market will allow the loan to close even with a payment plan worked out. See if you stop paying the IRS can then foreclose and the lender looses. I am a mortgage banker in TN

Posted by: loanmasterone on 2010-03-10, 09:48:56

If you are current on the fed tax lien, normally this might not be a problem. Your underwriter will want through knowledge about the tax lien as normally a tax lien would supersede a mortgage lien thus this make most lenders nervous. There are several things that the underwriter would consider, the amount of the tax lien, when the last payment is due. You could get an approval with the stipulation that this lien be paid off. It boils down to what risk is this lender willing to take with you and how believable you are with your documents. If you get approved this lender might be required to keep this mortgage loan in their portfolio and will not be able to sell it on the secondary mortgage market until the tax lien is paid off. So lender will do this and keep the mortgage note without selling it. I personally have seen a few lenders approve mortgage loan with the borrower having owed back taxes thus having a monthly payment. I hope this has been of some benefit to you, good luck. "FIGHT ON "

Posted by: wizjp on 2010-03-10, 10:05:08

Sure. But unless the proceedes are going to pay off the tax lien, forget it. IRS liens are superliens. They take foreclosure position over every other lien; and no one is lending money against a property that the IRS can foreclose or must be paid first out of a foreclosure action

Posted by: Javion on 2010-03-10, 15:23:56

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