Tax Lien Issue In The Middle Of My Deal
Need some sort of advise. I have a deal in the works in which a personal tax lien just popped up. Awhile back I use to work for a company that was purchased by another company and it seems the $ listed on my W-2 did not make it to the IRS office. By their records I only worked part of the year and under paid my taxes. Needless to say this just popped up on one of my credit reports sometime in the middle of December. The lien is only for $6900 but, needless to say it is there. My credit scores prior ranged from in November 700-725. Anyone have any idea if this will screw up my financing chances or suggestions for making this deal work. The asking price for the buildings were $140K and the final offer was accepted at $105K. Still waiting on the official appraisal but, it should come in around $150K+.
This deal did go through basically it was structured to pay off the lien at closing. The repayment of this issue will happen later. I finally have my first income property.
Have you checked with a broker to see about taking out some kind of HELOC on the property? IF there is no lien and you were pulling out say 50-60% of the LTV of the property I would think yo would be able to get the HELOC. My thought on this would be to look for a cash partner. You can use the equity in your home to secure thier cash and give them a first lien position on your property in the event that you defaulted on the real estate deal. The downside is that you have to share the profit. Once you get your credit up higher you can then take out the HELOC on your house and the profit is all yours
Old tax liens can often be settled for pennies on the dollar. Have you considered getting a pro involved to help you with the tax lien problem?