FHA????

Author

Previous Topic | Next Topic

BroadwayJerry

25 Posts

Posted - 05/08/2008 : 9:27:42 PM

I have a client that has a tax lien, the IRS will allow a subordination of the balance as long as I can find a Lender that will approve the aggreement. Does anyone have any experience with anything close to this situation? Thanks.

ss5547

243 Posts

Posted - 05/08/2008 : 9:45:50 PM

By the book, so long as you can prove that a payment plan has been worked out, and that your borrower is making said payments in a timely fashion, you are okay. Having said that, you may want to submit this loan in 2 or 3 places because I find that it's grey enouhg of an area that an underwriter can excercise his or her discretion on the matter.

BroadwayJerry

25 Posts

Posted - 05/08/2008 : 10:12:20 PM

What if the borrower just worked out the payment plan and the reason for the refi is to pay the IRS the majority of the balance but will still owe them once he closes? I'm thinking FHA. Would you recommend US BANK? Also, he has a lien on title. will the lender require it to be release?

jvanpetten

1895 Posts

Posted - 05/09/2008 : 05:11:53 AM

I have asked this question to two AE's, Taylor Bean and Gateway, both said that a 12 month payment history needed to show consistant payments and an agreement with the IRS. We also were going to pay down on the lien, this will help your cause with the lack of payment history, but it is a long shot. Compensating factors will be needed to over turn the 12 months history. My loan died for other reasons. For the subdordination agreement (they won't release the lien), go to irs.gov for the procedures.

lunarhamster

2539 Posts

Posted - 05/09/2008 : 05:16:42 AM

I have had Lenders that are fine with a subordination agreement, especially if they are paying them off.

Good luck getting the IRS to respond, half the time you cant even get a payoff from those jerk offs. I tried to get one and I couldn't even get a response, another time we just wanted to pay them off before we even did the loan, after 2 months of trying to get a payoff, we gave up.

They act like they want to be paid, and they have all the tools to makes ones life pretty miserable, but they are the most unorginaized bunch of bafoons I have ever delt with.

BroadwayJerry

25 Posts

Posted - 05/09/2008 : 07:54:04 AM

Thanks for the advice fellow memebers. Have a great Mother's Day!

Previous Topic | Next Topic