Comments on: Can I refinance a home that has a lean on it? http://diyquestions.org/diy/can-i-refinance-a-home-that-has-a-lean-on-it Answers to all your questions about DIY. Sat, 31 Jul 2010 04:41:01 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: MOCHALYTE http://diyquestions.org/diy/can-i-refinance-a-home-that-has-a-lean-on-it/comment-page-1#comment-1658 MOCHALYTE Mon, 06 Jul 2009 09:36:58 +0000 http://diyquestions.org/diy/can-i-refinance-a-home-that-has-a-lean-on-it#comment-1658 There are lenders out there that will provide financing to you on your home with the lien. The issues for the lender would be the following: 1. Is the home currently under construction ( if so, a lot of lenders will not do it because the home is incomplete and they may feel like their interest in the property will not be marketable enough to recoup the loss, if they had to sell it). 2. What is the current market value of the home ( this must be known to determine if there is substantial amount of equity in the home to cover paying off the lien). 3. If an appraisal is done, there can be no statement what so ever that suggest to the lender that the home is in fair condition ( that is unacceptable to any lender). Another alternative is the obtain a line of credit for home improvements. Lines of credit can be obtain through your local bank or any lending institution. However, some lines of credit may become the mortgage on the home; basically the lender may tie the line of credit to the home as a lien or a second mortgage to ensure that if the real estate is transferred; they will receive payment. There are lenders out there that will provide financing to you on your home with the lien. The issues for the lender would be the following:
1. Is the home currently under construction ( if so, a lot of lenders will not do it because the home is incomplete and they may feel like their interest in the property will not be marketable enough to recoup the loss, if they had to sell it).
2. What is the current market value of the home ( this must be known to determine if there is substantial amount of equity in the home to cover paying off the lien).
3. If an appraisal is done, there can be no statement what so ever that suggest to the lender that the home is in fair condition ( that is unacceptable to any lender).

Another alternative is the obtain a line of credit for home improvements. Lines of credit can be obtain through your local bank or any lending institution. However, some lines of credit may become the mortgage on the home; basically the lender may tie the line of credit to the home as a lien or a second mortgage to ensure that if the real estate is transferred; they will receive payment.

]]> By: Novice audio buyer http://diyquestions.org/diy/can-i-refinance-a-home-that-has-a-lean-on-it/comment-page-1#comment-1657 Novice audio buyer Sun, 05 Jul 2009 00:39:49 +0000 http://diyquestions.org/diy/can-i-refinance-a-home-that-has-a-lean-on-it#comment-1657 I am a mortgage broker and I come across this all the time. If there is a lien on the home, you can still refinance, but the lien must be paid off durring the refinace process. If you need $25,000 for repair and you have a lien for $5,000. Ask for $30,000 and tell your broker what the $5,000 is for and he will take care of the rest. Even better ask your broker to pull title find out the exact amount owed and contact the holder of the lien and ask to settle for less. Most likely they will as long as they re-coup some of the lost. DO NOT tell them your are refinacing other wise they won't strike a deal as they will know they can get the full amount. I am a mortgage broker and I come across this all the time.

If there is a lien on the home, you can still refinance, but the lien must be paid off durring the refinace process. If you need $25,000 for repair and you have a lien for $5,000. Ask for $30,000 and tell your broker what the $5,000 is for and he will take care of the rest.

Even better ask your broker to pull title find out the exact amount owed and contact the holder of the lien and ask to settle for less. Most likely they will as long as they re-coup some of the lost. DO NOT tell them your are refinacing other wise they won’t strike a deal as they will know they can get the full amount.

]]> By: Rebeca S http://diyquestions.org/diy/can-i-refinance-a-home-that-has-a-lean-on-it/comment-page-1#comment-1656 Rebeca S Fri, 03 Jul 2009 15:20:39 +0000 http://diyquestions.org/diy/can-i-refinance-a-home-that-has-a-lean-on-it#comment-1656 it would have to be paid off the lean holder is in first lean position meaning if you foreclose the bank gets paid second. it would have to be paid off the lean holder is in first lean position meaning if you foreclose the bank gets paid second.

]]>