Legal Question in Credit and Debt Law in Maryland

Loan for Taxes

I would like to know if it is legal to tell a lender that you owe taxes. No liens are against property. However, I owe (not really this is what they say we owe)$40,000. I have been paying for 4 years, each year they tag interest and penalties.

I am trying to refinance can I ask lenders for money to pay taxes? My home is worth $435,000 (just apprasiled). I owe $295000. IRS will not let us stay at one figure they keep changing payments. We would like to get them paid off. Again, can we go to a lender and ask for money to pay taxes??????


Asked on 3/29/05, 2:57 pm

1 Answer from Attorneys
Michelle Stawinski Bouland & Brush LLC

Re: Loan for Taxes

You can request a loan for any purpose and often without specifying the reason or providing an ambiguous reason such as "to pay off higher-interest debt." It is up to the bank whether they want to lend you the money for that purpose and under the financial circumstances you are in at the time. Problems usually only arise regarding the purpose of the loan when they lend you the money for a particular purpose and you then use the money for something else. In most instances that still does not present a problem, but I never recommend making untruthful statements to a lender regarding the purpose of a loan. There are federal penalties for making untruthful statements in connection with a loan.

Read more
Answered on 3/29/05, 3:28 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Maryland