ID theft is an awful thing to happen while you are looking for a home. Fortunately, as alluded to in some of your other answers there are steps you can take to get this straightened out....your first step is choosing a great lender that can review your credit with you and begin the process of getting everything straightened out, including the removal of any liens that are not, in fact, yours!
Jim, Home Savings of America, 703 591 5626 ext 419.
In you question you make reference to identity theft....is this tax lein on your property or on a property in your name "due to indentity theft"? Having that knowledge would go a long way.....for if you could prove that it was identity theft showing that you actually never owned said property, you may legal recourse to have this item removed from your credit report. Now if this is your property and circumstances resulting from the identity theft has caused this tax lien, then the advice given to you from our mortgage industry would be proper.
I hope this helps, if I can be of anymore assistance to you, please feel free to contact me at any time
Howard Rose III, Army(Ret) Realtor
Agent Leadership Council
Keller Williams Realtor
The 2nd thing you will need to work on is contacting the town/city/state that put the tax lien on you, and getting it released.
Please see my blog for advice and tips on getting a mortgage