Looking for a lender who will overlook an old irs lien from 1992. My borrower insists that it was charged off in a bankruptcy (ch-7) in 1998. He refuses to contact the irs thinking that if it wasnt discharged in bankruptcy, that they will start hounding him to pay it again, and he absolutely can’t afford to. I am obviously fairly new to the mortgage business, because i don’t have a clue as to what to do. Can anybody offer some assistance?
If the IRS charges this debt off this is the first one for sure like this, they usually will wait for years to collect if they haven’t been able to before this time. I would insist he bring me proof of discharge by the IRS, there is a reason he will not contact them as he feels apparently it is still laying there waiting for a time to collect the debt. I have with written permission contacted the IRS for the customer but if he is not willing to contact them his self he is pretty sure it is not discharged you will not be able to do this loan unless he settles this debt with the IRS. By the way you can’t excuse a debt with the IRS through bankruptcy this won’t work.
He can get a certified copy of his bankruptch from the archives and see if it was charged off and if it is there he can then contact the IRS.
To obtain a discharge of tax lien in bankruptcy there are some very stringent rules that must have been completed. First get a listing of all debts discharged–he or the bankruptcy lawyer should have a copy of discharge in bankruptcy papers. That would be your first step.