One of my creditors is Uncle Sam, and under the current law, until I pay back that loan, I will be unable to get a federal loan, including an FHA loan. OK, so I won't be doing that, but is it going to be possible for me to get a non-FHA loan in the future? I plan on being able to put down 30% on my next home (my current home is a cheap one with no mortgage, right about at the BK homestead exemption.)
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If by Uncle Sam you mean income tax debt AND you have a tax lien, you won't be able to get a conventional mortgage either. The tax lien will attach to the new property and come ahead of whatever mortgage you used to purchase it. Even if you were able to find someone to hold the note/mtg (PMM), once the property is deeded to you, the IRS lien will attach to the property and come first. This is one of the reasons Uncle Sam puts a lien on "you" when you owe large tax debt.Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way.. -
+1 to startingover08, if you have a federal tax lien it is going to prove very difficult to get any type of mortgage.Comment
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No, it's not a tax loan, it's a Small Business Administration disaster loan. There was no attachment to that loan - i.e., it was unsecured.Comment
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Starting over,
I am not sure you are right when you say:
"The tax lien will attach to the new property and come ahead of whatever mortgage you used to purchase it. "
I have been told that the lien from a discharged IRS tax debt is 'frozen' in time - it attaches only to the value of the property that you owned at the time of the discharge, not to property to acquired after the discharge.
As I understand it, the lien is not on 'you' as you put it, but rather on the property you held at the time of the discharge.
Can someone else confirm that, please?Comment
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