Posted on: 24th May, 2010 07:57 am
we would like to refinance our mortgage. the property is worth approx. $195,000 and our mortgage is approx. $125,000. we've had the mortgage for almost two years and the rate is 7%. we are making regular mortgage payments. the problem is we have a state tax lien of about $14,000 against the property for some unpaid income taxes. we have a payment plan with the state and have been making regular payments. we would like to refinance the mortgage to get a lower interest rate and pay off the tax lien and some other bills but we've been told we can't refinance as long as we have a lien on the property. this seems to be a catch 22 - we can't refinance unless we pay off the lien, but we can't pay off the lien unless we can refinance. do you have any suggestions?
Kathy B
welcome to mortgagefit!
You have rightly said that 'this' is a catch 22 situation.I think most of the banks do provide the bridge loan which is offered to mitigate the credit crunch between two subsequent deals.
So once you pay the taxes with this bridge loan,you will be eligible for refinancing and once your refinancing is approved you may pay off the bridge loan.
I hope this could help you.
keep in touch...
:arrow: :arrow:
welcome to mortgagefit!
You have rightly said that 'this' is a catch 22 situation.I think most of the banks do provide the bridge loan which is offered to mitigate the credit crunch between two subsequent deals.
So once you pay the taxes with this bridge loan,you will be eligible for refinancing and once your refinancing is approved you may pay off the bridge loan.
I hope this could help you.
keep in touch...
:arrow: :arrow: