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I want to refinance my house and I have a tax lien which was added after I bought the house. How is that handled?

by bridgette80 from West Warwick, Rhode Island. Jun 3rd 2016 Reply


The lender will require you to satisfy that lein so you can either pull cash out to pay the lien or satisfy it by paying the lien on your own first.

Jun 3rd 2016
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Larry Gray (lgray_312_247)
#4 ranked lender in California - 1,127 contributions

The tax lien needs to be paid off, or if an FHA loan you might get a payment agreement together and show you are making payments to the IRS to pay off the lien.

Jun 3rd 2016
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Scott Fix (ScottFix)
#1325 ranked lender in California - 184 contributions

Bridgette,Great question. Once you find a lender and get a pre-approval for the loan, escrow will be opened at a title company. When they run a preliminary title report, the tax lien will show up on the records, recorded in the county where the home is located. A new lender who will be providing you with the refinance funds will require that the tax debt be fully satisfied and the lien paid at the time of the refinance closing. This way, the new lender has a clean title, with no outstanding debts or liens the day they become the mortgage holder. All the very best, Scott.

Jun 3rd 2016
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Lynda Mckenzie (Lyndamck)
#9 ranked lender in Rhode Island - 33 contributions

Depending on what mortgage program you utilize for your refinance, will determine how the tax lien will be handled.If you use Conventional financing, tax liens must be paid off at or prior to closing. If you use an FHA loan, the delinquent account must either be brought current, paid, or otherwise satisfied, or a satisfactory repayment plan is established between the borrower and the Federal agency owed, which is verified in writing. Proof of a 3 repayments will be required. (cannot be all done at once, needs to be made over 3 separate months)Feel free to contact me. I am happy to answer any questions you may have.

Jun 4th 2016
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The answers already provided are correct. There are other factors that would need to be analyzed.Value if homePresent mortgage balanceAmount of tax lienCredit scoreEtc.If you would like to speak, I can be reached at (508)414-5828 cell.Jack Belles NMLS 9374Province Mortgage Associates East Providence, RI

Jun 4th 2016
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