Can mortgage lenders tell if you owe irs and state taxes when you are applying?

Question

i am and have been on a payment plan with an irs for the past 2 years. I just received a collections letter regarding state taxes from four years ago. if i were to go and apply for a mortgage would that pop up in some way?

Answer 1

They won't know it until you authorize them to check your credit.  You could ask them to wait to do that.

Answer 2

why would you be considering buying a house when you have those outstanding debts - back taxes are worse than debts (you can't discharge them in a bankruptcy) and if you've been on a payment plan for them, then you should be treating them like debts and get them cleared up before you think about getting a house. If you don;t have enough cash to pay them all off, then you don;t have enough cash needed for the down payment and closing costs on a house

Answer 3

Yes they can. The title company will do a search on your name to see if any judgments come up. the lender will require that they be paid prior to or at settlement.

Answer 4

I am not an expert but I would think not. If it is not on your credit (like a lien for taxes) I would think it would not come up. However, I do know they can research your tax records after you sign a form giving permission.

Answer 5

If it's not o your credit report, they won't see it, no.

But if you fail to claim it when filing the application, and they discover later, they can charge you with fraud, and demand immediate payment of the loan.

Answer 6

on your credit report it will show in PUBLIC RECORDS Section of the report. The fact you are in a repyment plan FHA will accept that with a pay history for the IRS as far as state goes with no payment plan in place for 12 months that could be a sticking point if in public records

Answer 7

It will be there and you can't finance with an instant lien.

Answer 8

yes they would know.