Posted on: 24th Apr, 2011 04:56 am
Lender's form has the following text:
"I FURTHER AUTHORIZE THE CLOSURE OF ANY AND ALL ACCOUNTS DEEMED NECESSARY TO PLACE (NAME OF LENDER) IN THE FIRST LIEN POSITION"
Explain what this means, if possible, with an example? Is this banking industry standard?
This authorization has a validity of 180 days.
"I FURTHER AUTHORIZE THE CLOSURE OF ANY AND ALL ACCOUNTS DEEMED NECESSARY TO PLACE (NAME OF LENDER) IN THE FIRST LIEN POSITION"
Explain what this means, if possible, with an example? Is this banking industry standard?
This authorization has a validity of 180 days.
Hi ephotojournalist,
As far as I can understand, your lender will be given the first lien position in regards to the property. Thus, when the property will be sold off, the first lien holder will receive his payments prior to anyone else. Nevertheless, you should contact a real estate attorney and take his opinion in this matter.
As far as I can understand, your lender will be given the first lien position in regards to the property. Thus, when the property will be sold off, the first lien holder will receive his payments prior to anyone else. Nevertheless, you should contact a real estate attorney and take his opinion in this matter.
I hear you. Then why is the lender seeking authorization over any and all accounts instead of the the property to be mortgaged?
Hi ephotojournalist!
Welcome to forums!
The lender will want to sign a formal document stating the fact that he is the primary lien holder on the property. All other liens are subordinate to him.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The lender will want to sign a formal document stating the fact that he is the primary lien holder on the property. All other liens are subordinate to him.
Feel free to ask if you've further queries.
Sussane