Refinance with a lien

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Icon Mini Profile sfalcett





Joined: 14 Apr 2009

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Post Posted: Tue Apr 14, 2009 8:38 am    Post subject: Refinance with a lien
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I am currently trying to refinance my home only to get a better rate. Although I did not know it the title company found a lien on my home. A few years ago Metropolitan Sewer District (MSD) put sewers in and set up lines to connect to my house (I am currently on septic system). Even though I don't use the sewer yet I still am obligated to pay for the sewer. Everybody in this subdistrict had a tax bill of around $8000. I couldn't afford it so I have been paying it off in annual payments. I didn't know that MSD put a lien on the house until it is payed off.
The mortgage people will not let this loan go through until the title is clear. My loan officer said that MSD could take the lien off for the refi then they can put it back on.
My question is..If the loan officer knows there is still going to be a lien on the property, how can he let the loan go through. And if he can do that is he able to still let the loan go through with the lien (and not take it off at all)...especially since I am paying it off, since not many people can afford $8k in one chunk and my credit score is 800?
P.S. The reason why I don't just roll it into the loan is because the financing rate for the MSD $8000 is about 2.5% vs. 5.125% mortgage loan.
Thank you ,
Scott
Icon Mini Profile gmakerley
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Post Posted: Tue Apr 14, 2009 9:53 am    Post subject:
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scott, your closing is confusing. you are "paying it off" or you're not "rolling it into the loan." which one?

the lien they hold is going to be subordinate to the first mortgage. that's all the mortgage lender cares about. they cannot do a mortgage that would be subordinate to the lien, but if that lien is re-subordinated, there's no issue.

i'm hoping that made a little sense to you.

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