Mortgage Lenders and LexisNexis

LexisNexis Risk Solutions has found that approximately 11 percent of U.S. consumers have a tax lien or civil judgment on file. With the new restrictions on credit bureaus’ reporting of lien and judgment data, mortgage lenders are prepared to adjust in order to better evaluate applicants creditworthiness.

In fact, many are turning to the LexisNexis RiskView Liens & Judgments Report to provide data and to remove the blind spot for mortgage lenders when evaluating applications.  With this information, mortgage lenders can determine the count of liens and judgments on file, the type, the dollar amount of tax liens, and more, including specific details for each lien and judgment included in the report.

If you or your client have received a file from LexisNexis Risk Solutions, Inc. (“LNRS”) and find it contains incorrect or incomplete information, THD Credit Consulting can help.  In fact, we have been able to fix these reports about 90% of the time!  Email or call our office to get started today.

-Erik Kaplan

New standards will strip all tax liens from credit reports

Because of improved standards for utilizing new and existing public records, the three major credit reporting companies will be deleting and excluding all tax liens from credit reports. That means consumers who’ve missed a tax payment will no longer be penalized for that when applying for loans.
 
This change went into effect on April 16th 2018 and is the result of a study by the Consumer Financial Protection Bureau that found problems with credit reporting and their recommended changes to help consumers.
 
What does this mean? The reporting agencies will remove any remaining tax lien data from consumer credit records.
 
Credit reporting and scores play a key role in most of our lives. Whether your report is affected or not, be sure to check your credit reports from all three bureaus to ensure the information is accurate.
 
If you have a tax lien or a judgement on your credit remaining at the end of this month, contact us and we can have it removed for you!

 

-Erik Kaplan

Tax Liens and Civil Judgments: What is changing and how it affects your credit report.

On July 1, 2017, the three national credit bureaus are going to stop collecting and reporting substantial amounts of civil judgment and tax lien information.  

In fact, the credit reporting agencies will remove this data from reports if the information does not provide complete details on consumers i.e. person’s name, address, Social Security number, or date of birth.

What are tax liens and civil judgments? 

Tax liens are levied against properties when the owner is delinquent on payment of taxes. Civil judgments are ordered by courts in legal disputes, typically involving monetary damages – debts owed by the losing party. Tax liens and civil judgments negatively impacts your credit scores and remain on credit files for extended periods.

How this change will affect you?

A study by credit scoring developer VantageScore Solutions which was created by the three credit bureaus, estimated that 8 percent of consumers would see an average score increase of 10 points on its most widely used scoring model if all civil judgments and tax liens were removed from credit reports. While 8% and 10 points may sound small, in the mortgage business they equate to significant numbers for applicants.

When this information appears on credit reports, it can affect your ability to obtain credit, loans or receiving consideration for employment. This change is a step in the right direction of minimizing the impact of non-loan related items on your credit score.

THD Credit can help!

If you have tax liens or civil judgments appearing on your credit report, give me a call or email me.  We can check out your options for getting them removed sooner.

-Erik Kaplan

Coming Soon!

How a Tax lien affects your credit

TaxLienWe all know that when you fail to pay your credit card bills or loans on time, your credit rating can suffer as a result. Did you know that not paying your income taxes can result in a tax lienand have the same affect on your credit score?

What is a tax lien

The federal government takes it very seriously if you fail to pay your taxes. And it can be serious for your credit reports and credit scores, too. A federal tax lien is the U.S. government’s legal claim against your property when you fail to pay a tax debt.

How does it affect your credit?

Once you fail or neglect to pay a tax liability on time, the IRS files a public document, a notice of federal tax lien, alerting creditors that the government has a legal right to your property – and it is one of the worst things that can appear on your credit report!

A tax lien, which may occur at the state, local or federal level, significantly impacts your credit score, affecting your ability to get loans, credit cards and even a cell phone.

How much or how little your credit score will be affected by a tax lien depends on a variety of factors, including other items listed on your credit report and your credit behavior. Even when a tax lien is paid and released, your credit scores will likely continue to be negatively impacted by the lien for many years as long as it’s on your credit files.

Is there any way to remove a lien from my credit file?

There are some instances in which you may be able to have a lien notice withdrawn from your credit file.  To discuss what steps you can take, give me a call (800) 822-7120 or email me at kaperik@gmail.com.

Looking for tax debt relief?

Guidance Tax Services is a tax relief advocate group that strives to protect you from the devastating effects of looming tax debt.  Give them a call at 800-381-8816 and ask for Rick Yeager and tell him I sent you! 

Want to receive our monthly newsletter in your inbox?  Sign up here.

 

THD Credit Consulting ・(800) 822-7120 ・kaperik@gmail.com