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I'd like to refinance from a FHA to conventional, but I have a tax lien that was put into place a couple of months ago. Will that be a problem?

by andrea.esk88501 from Granger, Wyoming. Aug 11th 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

Yes.. 2 things need to happen before you can apply.. you need to show that you are making on time payments on the tax lien and the IRS or state government must sign a subordination agreement allowing their lien to take 2nd position against a new first lien. I've helped people in the past with this very scenario, but I will tell you that if your tax lien is with IRS, the only way they will allow you to refinance is if the monthly savings you get by refinancing is paid to them as an additional monthly installment along with the regular payment. There are specific forms that the IRS requires and it takes about 45 days to hear back from then once you submit the application.. Obviously, it's much better to get the lien removed prior to application rather than trying to deal with it while it's still in place, but if that's not an issue then you'll have to go about it as I just stated.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Aug 11th 2016
Lorne Harvey (lorneharvey)
#80 ranked lender in Washington - 432 contributions

I did some research today on this, and was told that you can set up a payment plan with them, and after 3 payments are made on time, financing would be permitted.Please have your local lender check on this to confirm.

Aug 11th 2016
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