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Tax Lien...is my life over?

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I can pray my citi business won't blow up. The rest are only sub prime. I guess my only main concern is fha in 3 years. If so, I am ok probably. Albeit depressed.

 

TY, all.

 

I think the amount of the lien makes a difference as it's treated as a debt like other items in your CR.

As far as I know the record stays in your CR for 10 years (from release date)

 

It's obviously a negative you don't want. However, in my case I was able to get prime cards 1 - 1 1/2 years after release date. If the record doesn't update it will if you dispute it with CRA.

 

My amount was smallish and it was paid imm. so maybe that made a difference.

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I think how has it will find its way on to your reports depends on how much presence Lexis Nexis has in your area. They are one of the companys that get paid to go digging through courthouse judgment rolls to find liens, judgments and such to sell to the CRAs.

 

I had an issue with the IRS several years back and had the pleasure of a lien hitting my reports, pretty fast too. I had already signed a contract with one of the national tax relief companies to represent me and negotiate a payment plan. I do not know how much your debt with them is, but mine was over 35K and their payment arrangements were just not in my capability. The attorney that represented me got a much better structured payment in the full amount, but stretched over five years. They protected my assets, which the IRS can and is known to go after, and after one year of making payments on time, my lien was removed.

 

It did drop my scores by almost 150 points across the board during the time it was on my report though. Good luck and my only advice is be very careful dealing with the IRS. You better dot your I's and cross your T's, they do not play.

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Oh, and you will know if it hits your reports, once mine did, I started getting mail from every tax attorney in the area and the country. My biggest concern at the time was protecting assets and preventing levies on accounts. I wished I had acted sooner because in my arrangements I could have prevented the lien from ever being placed. And also, do not buy into the settling for pennies on the dollar unless you truly do not have the ability to pay the full amount, and then it is in a one time payment if you do. Sadly I learned the hard way to never have a run in with the IRS, but the 5K in retainer fees to the attorney was probably the best move that I ever made. Well, that and making sure I have a very capable CPA to stay on me about not getting behind on quarterly payments and finding tax breaks where I can. Best of luck to you.

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First, I doubt your score will drop 200 pts. Mine dropped 'maybe' 30 pts (hard to tell because at the same time my UTL went to 80% in combination with some new CC's and car loan) and my total score dropped around 50 pts. Score is irrelevant to me now though, because I have all the cards I need and a car loan to hold me off for while. I knew the tax lien was coming, so I got what I needed BEFORE it showed up.

 

My fed tax lien was filed around Nov 07, and garnishments started in Jan 08. However, the lien did not report until Fall 08.

 

You're life is not over - it will take me YEARS to pay mine off. The IRS even lowered my payments dramatically in Jan 09 since I had paid well for the first year (duh, it was a garnishment). At this lower rate, the debt will become 'uncollectable' long before I can pay it off due to penalities. I could probably even change it from a garnishment to self pay at this point, but right now this is easier. 10 years AFTER tax returns are filed, the IRS cannot pursue collections anymore. However, I do not know if that holds if you have a home at that point.

 

I have looked into mortgages with tax liens for future reference and found it is difficult, but not impossible. Once you are on a payment plan for at least a year or more, the IRS can agree to allow a mortgage. There is more paperwork to do, but if the IRS sees you are paying on time they can agree.

 

I looked into an offer in compromise, but you have to be dirt poor - not just living paycheck to paycheck to qualify AND be able to pay a lump sum to make it go away. At some point I may get a tax atty to really get the details.

 

Bottom line.... it is not the end of the world. However, it will be at least a year of ontime pmts (if not more) before you can look at a mortgage, and even then you will have work to do.

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I can pray my citi business won't blow up. The rest are only sub prime. I guess my only main concern is fha in 3 years. If so, I am ok probably. Albeit depressed.

 

TY, all.

 

I think the amount of the lien makes a difference as it's treated as a debt like other items in your CR.

As far as I know the record stays in your CR for 10 years (from release date)

 

It's obviously a negative you don't want. However, in my case I was able to get prime cards 1 - 1 1/2 years after release date. If the record doesn't update it will if you dispute it with CRA.

 

My amount was smallish and it was paid imm. so maybe that made a difference.

 

Tax liens are 7 years from the date of satisfaction. A BK7 would be 10 years from the date of filing.

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I can pray my citi business won't blow up. The rest are only sub prime. I guess my only main concern is fha in 3 years. If so, I am ok probably. Albeit depressed.

 

TY, all.

 

I think the amount of the lien makes a difference as it's treated as a debt like other items in your CR.

As far as I know the record stays in your CR for 10 years (from release date)

 

It's obviously a negative you don't want. However, in my case I was able to get prime cards 1 - 1 1/2 years after release date. If the record doesn't update it will if you dispute it with CRA.

 

My amount was smallish and it was paid imm. so maybe that made a difference.

 

Tax liens are 7 years from the date of satisfaction. A BK7 would be 10 years from the date of filing.

 

At the time it happened I searched and I am pretty sure the information I found said 10 years.

However, I like 7 much better!

 

I'll have to see if it drops at the 7th anniversary...let's hope so.

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My lien went on my credit report very fast. Hire a tax attorney they can do wonders. We Appealed and the IRS withdrew the lien, we also paid it off in exchange for the withdraw of lien. A withdrawal of lien does not get it off the credit report because it is in the courts file. They do check with the courts. The next step was to go to the courts and get it expunged from the court records. Then I sent a copy of the court order to expunged to the credit bureaus and then they deleted it. Took a hit of about 100 points with the lien when it came off the report my scores went up 80 to 100 points.

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following this ....getting ready to hire a tax attorney to try one more time to get my tax lien resolved.......some good advice......NEVER use one of those guys you see on tv, offering to help with the IRS. A huge waste of Money. Google any of them and see for your self.

 

Also, if you hire a CPA, make sure he is up on all the latest IRS requirements for an offer in compromise. A CPA was my second try. Another 2 grand wasted. Then he billed me for another thousand. I did not reply to his final bill by mail or phone....eyeball to eyeball told him where he could file that bill. LOL, I guess he filed it there, I never heard another word from him.

 

I also heard recently that obamma is giving the IRS tons of extra money for the enforcement and recovery of unpaid taxes. So, time is of the essence for me at this point.

 

I knew the lien was eminent, and went on an app spree immediately. It was a good thing. It hit my all three reports within a VERY short period of time. All of my creditors know it is there, they must see it when they review my reports. I still get CLI's, and got a 5.6% interest auto loan from my credit union about a year after it hit my reports. I also financed a zero turn mower thru Yard Card.

It has not been the end of the world for me. But I would love to have it off my reports.

 

Funny thing is my scores are pretty good, but I am in a different bucket.

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