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How does a IRS tax lien affect you if you want to refinance a home and the tax lien is 17 years old?
An IRS tax lien typically expires after ten years. The problem with this is that there are two types of IRS liens. The more common type is called a "self-releasing" lien.
If you are able to obtain a copy of the lien itself, you want to check to see if it says something along the lines of "this lien expires on SOME DATE unless refiled". If it says that, you have a self-releasing lien.
The problem with this is that the credit bureaus do not seem to understand the concept of the self-releasing lien. They simply watch the public records to see if the IRS has reported the lien as being released, and if the IRS has not done so they assume the lien is still in force.
A lender will typically want a tax lien released or subordinated to the new lender if you are trying to refinance the home. You can contact the the IRS Lien Unit at 1-800-913-6050 and ask them if they show any liens on file. If they say no, tell them that there is an old tax lien that is still showing up on your credit report and they should be able to fax you a formal Release of Lien and also mail one to your County Clerk and Recorder.
If the lien is actually still in force (which is unlikely, given that the IRS Statute of Limitations to collect a debt is 10 years) then you will need to get a Certificate of Subordination before you can close on the loan.
What else can I help you with?
Refinance your mortgage if you owe back taxes?
Do you have a lien on your home? If a lien is placed on your home, you will not be able to refinance to pay back taxes.
Is having a lien on your property a bad thing?
Having a lien on your property is generally considered a negative thing because it means that there is a legal claim against your property for an unpaid debt or obligation. This can affect your ability to sell or refinance the property until the lien is resolved.
Can you refinance your house after getting a home equity line of credit?
Technically, yes, but the home equity line of credit is a lien against your home and will have to be paid off when you refinance the house. In reality, many people find that the unpaid balance on the HELOC, plus the unpaid balance on the original mortgage, exceeds the amount the bank will lend on the refinance. Before you apply for the refinance, just talk with your lender. They can probably walk you through the numbers on the phone and determine pretty quickly whether or not you have enough equity to refinance. If you bought your home several years ago, you may have to have an appraisal done to find out the maximum amount the bank will lend.
Can you refinance a second loan only and not the first?
Yes, but the holder of the second has to agree to it. Its called subordination. Normally when a first mortgage is paid off the second moves into the first position unless the holder agrees to "subordinate" the second. Yes, you can leave the second alone but the second mortgage company will have to allow it by signing a subordination agreement. Basically, a subordination agreement is an instrument that allows a first lien or interest to be paid off and allows another first mortgage company to come in and be the first priority lien holder.
You are about to get a lien on your home how will that affect you will you owe interest charges fees etc?
This will affect you in numerous ways, you have already built up legal fees due to the lien, it is on your credit, you have just about destroyed your credit rating. I would suggest you go to your bank and attempt to negotiate new terms or find another company and reapply for a refi Or sell your home to Ugly House at a loss but get out from under it if you cannot afford it.
Refinance your mortgage if you owe back taxes?
Do you have a lien on your home? If a lien is placed on your home, you will not be able to refinance to pay back taxes.
If you have a lien placed on your house does this mean you can't refinance your mortgage OR buy a new home until that lien is removed?
The lien doesn't usually affect after-acquired property unless it's an income tax lien. You cannot mortgage, refinance or sell the property against which the lien was recorded. That is exactly the purpose of recording a lien in the land records.
How does an ex's tax lien affect you if you want to refinance a home where the deed has both your names?
The lien will have to be satisfied if he's to remain on the deed. The easiest course of action is to take him off -- the title company can handle this, it's not an overly-complicated procedure.
What is the results of having a judgment lien put against your home in Louisiana?
When you sell or refinance they get paid
I have a tax lien on my home can I refinance it?
The lender will require that the lien be paid off with proceeds from the refi if the refi is approved. No. A lien encumbers the property and it cannot be sold nor refinanced without being satisfied or settled before any other financial transaction occurs.
Is having a lien on your property a bad thing?
Having a lien on your property is generally considered a negative thing because it means that there is a legal claim against your property for an unpaid debt or obligation. This can affect your ability to sell or refinance the property until the lien is resolved.
What does it mean when someone puts a lien on your home in California?
It means that you owe someone money, they have obtained a judgment against you and you will not be able to sell or refinance your property until the lien is paid and a discharge is recorded.
What happens after a lien is filed on your home?
You will be notified of the lien/debt. In order to clear the home title (i.e.- for sale, or refinance, etc) the lien/debt will have to be satisfied. Depending upon the size of the lien and the circumstances, the lien holder may be able to force a sale of the property in order to collect the debt. It also depends on the lien holder's position. Priority is given to a tax lien, then the 1st mortgage, 2nd, etc.
If you're refinancing your house but the contractor who was renovating is putting a lien on the house because you still owe him a small amount of money will that affect the refinancing and your credit?
If the lien is reported to your the 3 credit reporting agencies or even one as a collection it will effect your credit. If the lien is just on your home it will not effect your credit however you will have to pay the lien off when you sell or refinance your property. Also some of these liens have running interest which can be a shock in the future.
If you don't pay can they take your home?
The IRS could get a lien on your home for failing to pay any income taxes that may be due. If there is a federal tax lien on your home, you must satisfy the lien before you can sell or refinance your home.
Can you refinance your house after getting a home equity line of credit?
Technically, yes, but the home equity line of credit is a lien against your home and will have to be paid off when you refinance the house. In reality, many people find that the unpaid balance on the HELOC, plus the unpaid balance on the original mortgage, exceeds the amount the bank will lend on the refinance. Before you apply for the refinance, just talk with your lender. They can probably walk you through the numbers on the phone and determine pretty quickly whether or not you have enough equity to refinance. If you bought your home several years ago, you may have to have an appraisal done to find out the maximum amount the bank will lend.
If I have work done on my house and can not pay will a lien help me?
A lien is not designed to help a homeowner. It is a contractors way of laying claim to some of the value in your home so that you can not sell it or refinance with out paying off the lien. In addition to the original dept you will be required to pay a lien filing fee (about $100) to clear this.
