Posted on: 31st Jan, 2009 01:12 pm
i understand that having a heloc when refinancing my first mortgage will require that the heloc be subordinated. however, the heloc did not show up on my credit report, nor did it come up any the title work or anywhere else. i contacted the lender of the heloc and they verified that it still exists. since the heloc did not surface in any of the paperwork, my broker wants to just let the refinance go through and not worry about subordinating the heloc. my question is, will this have any negative ramifications for us? won't the heloc then be listed as the primary loan somewhere? also, we would need to reduce the heloc since the full amount will push or ltv ratio above 80%. the broker says to leave it alone. any ramifications around this? we have never had a balance on the heloc--it is just there for unforseen emergencies.
I would ask your heloc lender to provide you with a copy of the recorded mortgage - they should then be able to determine a) if the document was ever recorded or b) if there was an error on the document (legal description for example) that expains why it's not showing up on a title search