HELP! Hard Money Loan with Tax Lien on record

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I had a very unfortunate event in which I received an IRS Tax lien a few weeks ago. I am appealing the lien because I did not receive the warnings in the mail. However, it was filed in November. I promptly paid off the lien and cleared it. But the damage is done and it is on my credit, which is a killer. I will be working to try to get it taken off my credit report through the "Fresh Start" initiative. This could take months though. 

My question to all of you is the following. Can I get a hard money loan if this IRS Tax Lien is on my credit report, but paid off? 

I have about 450k cash in my account for good sized down payments on any hard money loans.

Thanks!

[Michael T. Breen]

Hi Nicole

You may want to contact IRS Lien Release Department and obtain a copy of the release. By law they are required to release the lien within 30 days of guaranteed payment. Generally, when you call Lien Release you will get a vm recording. Leave a message that you want a copy of the release and they will mail it to you. It will go quicker if you leave the lien number, date filed and where. 

Once you get your copy of your lien release, you may want to consider requesting withdrawal of the Federal Tax Lien from the IRS. This is done on Form 12277 Application for withdrawal of Filed Form 668(y) Notice of Federal Tax Lien. Based on your facts it appears that your reason for the request is that , " it is in the best interest of the taxpayer and the government" I would recommend preparing a narrative explaining why it is in the best interest of the government (are they going to somehow loose tax revenue with that lien reported on your credit report) as part of the application. You also must request that the IRS report the withdrawal to the 3 credit bureaus. They don't do it automatically. You must also provide the contact info for the credit bureaus. Lastly, if your request gets denied, you have a right of appeal. I hope this helps.