Home Buying in McDonough>Question Details

pdhall70, Home Buyer in McDonough, GA

Can a recent tax lien, affect me purchasing a house. Currently, working with IRS to resolve this issue. Looking to purchase this summer.

Asked by pdhall70, McDonough, GA Mon Dec 24, 2012

Help the community by answering this question:


Anyone with an outstanding IRS/Federal or State Tax Lien is going to be restricted from purchasing a property with a mortgage. This is because all liens such as these impact the lender’s position in title to the property.

Only if you have entered into a repayment plan and have approval from the appropriate agency, can you still have an outstanding tax lien at the time of closing. The same would be true for a judgment.

The lien must either be paid in full or the agency has to have agreed to subordinate it.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
1 vote Thank Flag Link Mon Dec 24, 2012
Hello Home Seeker,

If you still maintain a 620 credit score with the lien filed against you. You will stll be able to purchase a home. If I can be of assistance, please call Henry at Solid Source Realty 770-914-2214 or 678-779-4472.

Best Regards,

Henry Rose
Solid Source Realty

P.S. Happy House Hunting.
0 votes Thank Flag Link Mon Dec 24, 2012
Henry, All liens impact title, so it does not matter what a credit score is. The lien must either be paid in full or the agency has to have agreed to subordinate it.
Flag Mon Dec 24, 2012
Unless I am missing something, it is not clear whether the tax lien is something against YOU or against a home you wish to buy, something a previous owner had caused. The answer will differ considerably, depending upon which situation we have.

If you wish to buy a home which has a tax lien on it, you cannot get good title until that lien is settled, either by the seller or by you. Normally, it is the seller's responsibility. If you buy it with the lien then it will be your responsibility to settle it. Sometimes that can be put off, but it will always be a cloud on the title, considered unsaleable, until that is resolved. If it is a IRS lien, that's more serious and you will definitely need an attorney's advice.
0 votes Thank Flag Link Mon Dec 24, 2012

It should not affect you if the following are true:
1. You have either paid it off prior to purchase or have reached a payment schedule for repaying the debt with the IRS. If you have created a payment schedule, you will need to have done so at least 3 months in advance of the home purchase to demonstrate you are paying the debt as promised.
2. Adding the lien repayment to your debt load would still enable you to qualify from a debt to income perspective.
3. The tax lien has not lowered your credit score below the minimum threshold (usually 620) for qualifying for a mortgage.

I hope this helps.

Timothy Brown
LPO Manager | Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
678.468.5626 x110 | fax 678.935.1156 | cell 678.467.9959
NMLS#: 168281
0 votes Thank Flag Link Mon Dec 24, 2012
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