Terri, Home Buyer in Spokane Valley, WA

How difficult is it to buy a home with a tax lien?

Asked by Terri, Spokane Valley, WA Wed Jul 23, 2008

Our credit score is 724. We're 1st time home buyers. I have been told a FHA loan may be the way to go. I'm happy to answer any questions.


Help the community by answering this question:


good afternoon terri.......i agree on one point with the previous comment but not both......if the home you are buying or the seller of the home has a tax lien.....it would have to be paid at closing or prior to like any other lien...if you have the tax lien......it is subordinate to a purchase money mortgage...(but not a refi)..you could not close conventionally..it would have to close either va or best shot is fha......best regards...bob mcclure..mortgage now farmington, michigan (248) 974-4444..there are a lot of title co's that don't know that.......
0 votes Thank Flag Link Sun Jul 27, 2008
Do you mean the home has a tax lien or you do? If the home has a tax lien it will have to be paid prior to settlement and the seller will have to have the funds to do this. If you have a tax lien than that usually shows on your title report and it will also need to be paid. Best to check with your lender if you have the lien; they can best advise you.
0 votes Thank Flag Link Thu Jul 24, 2008
Hi Terri...... you will need to clear up this tax lien before you will be approved by an underwriter for a loan. Lenders are very skittish at the moment due to the extreme amount of foreclosures. Lenders, including FHA, are currently looking under every rock to find a reason to deny a loan. Talk to a realtor and a mortgage broker in your area, and together they will work with you to get you on track to pre-approval and the purchase of your home.
Web Reference: http://www.YvonneBaker.com
0 votes Thank Flag Link Wed Jul 23, 2008
Sorry...I should have been more clear. We owe taxes and have a tax lien against us.
0 votes Thank Flag Link Wed Jul 23, 2008
not difficult at all, regardless how it is paid, the tax must be paid before the sale.

Pay the tax, get the house
0 votes Thank Flag Link Wed Jul 23, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer