Qualifying For Home Loan With Tax Lien

Mortgage Lenders will not only look at credit scores, but will also carefully examine your credit and credit payment history.  Two of the things mortgage underwriters will look for are judgments and tax liens.  You can qualify for a home loan with tax lien and judgment as long as you have a written payment agreement and have been making timely payments for the past three months.  Mortgage lenders will want to see a written payment agreement with the Internal Revenue Service as for the re-payment terms and conditions.  At least a three month payment to the Internal Revenue Service needs to have been in effect.  Mortgage underwriters will want to see at least a three months canceled checks to be provided.  There are mortgage lenders that will not qualify for a home loan with tax lien unless the borrower has had at least a 12 month re-payment history with the Internal Revenue Service.

Qualifying For Home Loan With Judgment

Judgments are the worst deragoty credit item you can have.  Mortgage lenders think of judgments worse than bankruptcies and foreclosures.  A judgment is a court ruling favoring the judgment creditor and giving the judgment creditor the right to enforce the judgment.  A judgment creditor can go after the judgment debtor to collect on their judgment by legal channels.  If a judgment creditor finds out that the judgment debtor has income, the judgment creditor can go after the judgment debtor and try to garnish their wages.  The court that issued the judgment has no enforcement powers and it is not the responsibility of the courts to collect on the monetary judgment for the judgment creditor.  The judgment creditor needs to proceed through other legal channels in trying to enforce and collect on the monetary judgment.

Settlement On Judgment And Home Loans

If you do not have a written payment agreement set up with a judgment creditor and you need to qualify for a home loan, you either need to have the judgment paid off in full and/or have it settled with the judgment creditor and have that judgment reported as satisfied.  You do not have to pay the whole face value of the monetary judgment.  You can settle for a fraction of the monetary judgment face value amount but need a release of the judgment and the judgment needs to show that it has been satisfied.

How Long Does Judgment Remain On Credit Report

A Judgment will remain on your credit report for a period of 7 years.  However, even if the judgment is deleted off your credit report, the judgment will be effective for at least 10 years in most states and the judgment creditor has the option to renew the judgment for another 10 years.  Most judgment creditors will not renew a dormant judgment for another 10 years unless they know that the judgment is collectible due to the fact that it costs money in legal fees and recording costs in renewing the judgment.

How Long Will Tax Lien Remain On My Credit Report?

A tax lien will remain on your credit report until the tax lien is satisfied and paid off in full.  From the date it has been satisfied and paid in full, it will remain on your credit report for a period of 7 years.  Judgments will remain on your credit report for a period of 7 years from the date the judgment was recorded on public records.

Can I Qualify For Mortgage If I Get Judgment And Tax Lien Deleted Off My Credit Report?

Credit repair does work and many consumers have great success in having collections, charge offs, bankruptcies, foreclosures,  tax liens, and judgments deleted off their credit report.  However, mortgage lenders will do a third party search with outstanding judgments, tax liens, bankruptcy, foreclosure, and other public records.  Even if you get public records expunged from your credit report, the chances are that judgments, tax liens, foreclosures, and bankruptcies will be revealed when the mortgage lender does a third party public records search on you via Lexis Nexis or other third party searching service.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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