Posted on: 07th May, 2009 01:25 pm
if there is a lien against my property, can i still refinance it. if it is refinanced and cash is taken out, will the lean holder get paid first or he/she/it will not know about it.
Hi Mukarji,
Yes, even if you have a lien on your property, you can refinance, take cash out and pay off the lien.
In such scenarios, the lender won't approve you the loan until you agree to pay the lien off. You certainly can pay the lien at the time of closing
If it is a federal tax lien, you have an option of lien subordination, in this case IRS receives it's full proceeds from the refinance of the property then lien subordination is allowed
Hope this helps.
Yes, even if you have a lien on your property, you can refinance, take cash out and pay off the lien.
In such scenarios, the lender won't approve you the loan until you agree to pay the lien off. You certainly can pay the lien at the time of closing
If it is a federal tax lien, you have an option of lien subordination, in this case IRS receives it's full proceeds from the refinance of the property then lien subordination is allowed
Hope this helps.
What Shayne said, but to answer your question on if they will know, yes.
If you have a lien/judgement on title, you HAVE to pay through the closing.
If you have a lien/judgement on title, you HAVE to pay through the closing.
Not only that, but if you have outstanding collection items on your credit report, many banks will require those to be paid at closing as well.
