     Anonymous | Saturday, December 04, 1999 - 11:59 am 
I am having trouble having paid off tax liens removed from my credit reports. Experian does not show any of the liens, Equifax shows them as paid,but trans union still shows them as unpaid even after I disputed them. Someone told me even if they are paid off they are still allowed to show on my credit report. I am afraid if I continue to dispute this with trans union they will label all future disputes about this as frivolous. What can I do? All other credit on my report is good and I still am able to obtain other types of credit, but this problem excludes me from getting a mortgage. |
| fitness | Saturday, December 04, 1999 - 12:27 pm
Even after the liens are paid they will remain on your report as being satisfied for 7 yrs. Since you are anticipating getting a mortgage usually the lenders' processors will make sure they get a supplement from the credit bureau stating it was
paid. You must have documentation showing it was paid in full(depending on what type of lien it was you may be able to go to your local court house and get something in writing.) Documentation is the key. Lenders will also re-
quire you to write a letter of explanation as to why the lien occured. I don't think this should be a problem if you have the documentation to show to a lender. |
| eddie cash | Monday, December 06, 1999 - 03:11 pm
By eddie cash:
So what exactly are tax liens and how do they affect your credit? Is it taxes that people refuse to pay the government?(Like the corrupt and pompous jerks in politics need anymore) |
| voigtkampff | Tuesday, December 07, 1999 - 06:06 am
Under §6321 of the tax code, if a taxpayer refuses or neglect to pay a tax liability upon demand by the IRS, then there is automatically a tax lien imposed against that taxpayer (without any further notice). But because there is no public record of that tax lien, it is invalid against 3rd parties. Only valid against the taxpayer. But once the IRS files a Notice of Tax Lien in the public records then 3rd parties are placed on notice, and the lien is valid against everyone. That IRS lien is subordinate (usually) to prior mortgages and local tax liens, but it's definitely a problem. I believe that they last quite a while, maybe even indefinitely, unlike judgment liens which automatically expire after a certain period (unless renewed). As far as how they affect your credit, I only know that they are very bad. |
| rcb | Tuesday, December 07, 1999 - 06:18 am
Tax liens affect your FICO scores similar to any other public record item (bankruptcy, judgements, etc.).
With an existing tax lien, they have first dibs at a property. (I've read this in many places). This would leave a lender high and dry if you fail to fulfill the mortgage commitment and they attempt to foreclose. |
| chris d | Tuesday, December 07, 1999 - 04:16 pm
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| rcb | Thursday, December 09, 1999 - 04:37 am
You don't need to post this eighteen times, once on each forum. Once is enough. |
| Anonymous | Friday, December 10, 1999 - 04:37 am
Under the revised tax code taxes are only collectible by the IRS for a period of ten years from the date of assessment of the taxes. It doesn't matter when they file the lien. It can be one day after the taxes are assessed or it can be 10 years. The lien just secures the amount owed. The date of assessment is the key. Once the statute of collections runs, then the IRS must release the lien within 30 days. If at the end of 30 days the IRS has not released the lien, you have the right for a period of 2 years from end of the 30 day period to file suit against the IRS in United States District Court and to also ask for your attorneys' fees.
To have a lien that has been paid labeled "released" with the credit bureaus is fairly simple. Just need to provide documentation. I had a lien that was wrongfully filed against me. The state finally issued a "Notice of Cancellation of Tax Lien" and filed with the county clerk's office. It's obvious the credit bureaus don't check with the county clerks' offices in this country very often as I tried getting the credit bureaus to remove the lien (to no avail) based on the fact that the county clerk had the lien listed as "canceled." I then obtained a copy of the "Notice" from the state's department of revenue and sent it along with dispute letters to each of the credit bureaus. Bye-bye tax lien. You just need to get a copy of whatever the tax entity you are dealing with filed with the county clerk's office and then send it to the credit bureaus with a dispute letter.
When planning to obtain a mortgage, one needs to start about a year ahead of the planned application to check on credit reports and start clearing up matters. It is not an instant process. |
| Voigtkampff | Monday, December 13, 1999 - 10:43 am
I just finished a seminar which confirmed the 10 years of collectibility on the IRS liens. What was not confirmed is the post that the IRS has first dibs. The rule for liens that "first in time is first in right" seems to apply.
However the IRS can have their lien take priority and subordinate an otherwise priority mortgage. That is called priming and is apparently not that common. Here in Florida, the IRS lien only attaches to the equity in homestead property, and is subordinate to prior-perfected mortgages. The first dibs rule only seems to apply to local tax liens (property taxes).
RBielak, Florida is a homestead state so that may be what makes the difference. |
| rcb | Monday, December 13, 1999 - 01:31 pm
voigtkampff -
Sorry I didn't clarify. I was referring to property tax liens, not liens such as failure to pay income taxes and such. And as far the other types of tax liens, I don't know how that plays into the "first in time" rule.
And ... this is Michigan law, so I can only speak for MI.
Guess I need a disclaimer ... :) |
| Voigtkampff | Tuesday, December 14, 1999 - 03:47 pm
Maybe this is just in Florida, but those local property tax liens are much scarier than any other credit-damaging liens. Here, if that property tax is not paid, someone can purchase it and ultimately use that tax certificate to get title to the property. And this happens before the passage of 7 years. |
| Sean | Wednesday, December 15, 1999 - 06:52 am
It takes about 4 years in California for someone to win possession of your house for unpaid property taxes. The certificates aren't sold, however. |
| Anonymous | Wednesday, December 15, 1999 - 09:47 pm
"I am having trouble having paid off tax liens removed from my credit reports"
"Fitness" is the only person who responded to the question appropriately. (Everyone else went off on their own tangents.)
A paid tax lien can stay on your credit report for seven years, but there is no justification to continue reporting it as UNpaid. Send copies of your proof of payment to Trans Union by certified mail and tell them to report the lien as paid. |
| ZackSmith | Saturday, February 05, 2000 - 06:28 pm
Regarding the paid off tax lien still appearing on a credit report:
I had several tax liens in the last couple of years that I finally was able to pay. The IRS was very good about notifying the CRA about the changed status and deleting the listings. None of the paid liens appears now on Equifax or Experian, and only one on TU.
I would suggest asking your revenue or collection agent at the IRS about releasing the lien and requesting the CRAs to delete it.
Now if I can just get the rest of my report cleaned up!
BTW: Just discovered this forum. What a breath of fresh air! I've been dealing with credit problems for years and this is the best overall discussion group I've ever seen. I'll be back often! |
