Tax lien surprise disrupts escrow

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Q: We got preapproved for a loan and started house hunting in June of this year. In August, we made an offer on a bank-owned home (REO), and the bank accepted. Three days before we were supposed to close, the mortgage broker told us that the loan was in jeopardy because we have a state tax lien on our credit reports for $6,000. The thing is, we told him about this tax lien back in June, when we gave him a copy of our payment arrangement letter from the state! We have always made the payments on our lien on time. We signed a three-week extension of escrow. Can this stop us from getting the loan? Why is this just now coming up? What is our recourse against the mortgage broker if he screwed this up for us? A: You really have three issues here: (1) your concerns that your mortgage broker is not on top of things, (2) how the tax lien may impact your ability to qualify, and (3) how the payment arrangement affects your ability to secure the mortgage. Mindset Management Between you...