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Tax Lien Guidelines

March 15, 2012

CONVENTIONAL GUIDELINES

Judgments, Garnishments, and Liens

Open judgments, garnishments, and all outstanding liens that are in the Public Records section of the credit report will be identified in the Underwriting Findings report, and must be paid off at or prior to closing.

Documentation of the satisfaction of these liabilities, along with verification of funds sufficient to satisfy these obligations, must also be maintained in the permanent loan file.

Note: Fannie Mae guidelines regarding the payoff of tax liens and the supporting documentation apply to loan case-files underwritten through DU as well as manually-underwritten loans.

FHA GUIDELINES

The Internal Revenue Service (IRS) routinely takes a second lien position
without the need for independent documentation. For this reason, eligibility
for FHA mortgage insurance is not jeopardized by outstanding IRS tax liens
remaining on the property, unless the lender has information that the IRS has
demanded a first-lien position.

Tax liens may remain unpaid if the lien holder subordinates the tax lien to the
FHA-insured mortgage.

Note: If any regular payments are to be made, they must be included in the
qualifying ratios.

FOR A FAST PRE-APPROVAL:
http://pmcmortgageloans.com/mortgage_application.php

First, complete a loan application on our website
-Go to http://www.pmcmortgageloans.com
-Click on Apply Now at the top
-Scroll to the middle of the page and Click on 3. Full Application
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