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
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) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
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.
Solid Source Realty
P.S. Happy House Hunting.
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.
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.
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