Tax Lien on Credit Report-Do You Still Rent? Owner Finance?

[Tod R.]

I am going to sell my home in Haslet this summer. As a result my long time tenant is starting to look for a new house to lease or owner finance. She's telling me that because of a tax lien as a result of a 2008 divorce, landlords do not want to rent/owner finance. Here credit is in the low 500's but she has a perfect rental history with me for the last 4 years.

I maintain that based on her payment history with me she should be able to find a lease/owner finance deal.

Do you see this as a serious problem?

[Bill Gulley]

Yes, you have a problem as she will not be able to refinance a seller financed note/wrap/CFD/LO untill she paysoff the lien.

You house is also a non-owner occupied deal which kicks in the Safe Act issues and any purchase transaction needs to be originated by a MO and no one who values their license would squeeze off in underwritting that deal unless it was fully amortized.

The lien can also be attached to her property if you do a note and DOT, it's not so much a credit issue as a possible collateral encumbrance for any lender. You could do a long term installment contract perhaps a CFD and avoid this issue.

Knowing she can not perform in a balloon obligation means you will be in it for the long haul.....good luck