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.


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Bob McClure, Other Pro, Walled Lake, MI
Sun Jul 27, 2008
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 would have to be paid at closing or prior to like any other lien...if you have the tax is subordinate to a purchase money mortgage...(but not a refi) could not close would have to close either va or best shot is regards...bob now farmington, michigan (248) 974-4444..there are a lot of title co's that don't know that.......
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Mary Sunde, Agent, Bellevue, WA
Thu Jul 24, 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.
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Yvonne Cousar, Agent, Round Rock, TX
Wed Jul 23, 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.
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Terri, Home Buyer, Spokane Valley, WA
Wed Jul 23, 2008
Sorry...I should have been more clear. We owe taxes and have a tax lien against us.
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Daniel, , Baton Rouge, LA
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
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