Don't know what to do

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wdh65

Guest
Everything is so complicated. We have 2 mortgages and a lien (just found out) on our house. We want to refinance to lower our monthly payments and then get a heloc to do repairs on the house. The house appraised for 750,000. We owe $166,776. @5.75%, 95,[email protected]% (a loan modification) and then the lien for $31,160. That total is $293,407. Is it possible to refinance with this situation?
 

Jzone

LoanSafe Member
Jun 20, 2017
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What is the $31,160 lien for? Mortgage lien? Judgement lien? Contractor lien etc....?

Do you want to refinance the 1st and 2nd into a new mortgage? Whats your plan for the lien?

You owe a total of almost $300,000 on a house appraised at $750,000. If you have a decent credit score and income, you should not have a problem getting a refinance.
 
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wdh65

Guest
The 31,000. is a mortgage lien, formally a Heloc. About 7 years ago I got a call from the bank and was told I didn't have to pay on this anymore, that they were going to "charge off" the loan. I didn't know at that time that a charge off benefitted the bank.
We do have excellent credit & decent income. Can the 31,000 lien be included in the new mortgage? Or does it have to be paid off in advance?
 

OneHugeMess

LoanSafe Member
May 30, 2016
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The 31,000. is a mortgage lien, formally a Heloc. About 7 years ago I got a call from the bank and was told I didn't have to pay on this anymore, that they were going to "charge off" the loan. I didn't know at that time that a charge off benefitted the bank.
We do have excellent credit & decent income. Can the 31,000 lien be included in the new mortgage? Or does it have to be paid off in advance?
What bank was this - that told you not to pay on it anymore? Did they send you a lien release, or any papers?
 
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wdh65

Guest
It's Citizens Bank. They didn't send a lien release or anything else. They said to think of it as an early Xmas present. I never heard from them again and it never showed up on my credit report. I had to jump through hoops to get them to find it all these years later (7 years).
 

OneHugeMess

LoanSafe Member
May 30, 2016
596
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To answer your question, all of these loans, including things like credit card debt, or other bills can be rolled into your new mortgage.

Since you have a 2nd Mortgage @ 2%, I would ask them, if they will subordinate the debt to a new lender, or mortgage. And than, if given the go-ahead, leave it in place. That 2% Rate is a good deal, on a relatively big balance -- and you might as well, keep it as low as possible.

The Mortgage with Citizens Bank is bizarre. Were you previously delinquent on it? Some lenders would charge those off after six-months of non-payment, while some didn't -- but I find it odd that they told you, not to pay it anymore.

If you really want my advice, I would try and ask for a lien-release. What you want to do, is get a printed copy of the security instrument/mortgage/lien recorded against your home, and fax them a copy of it to their Lien Release Department. You'll also want to include a personal note saying, this debt no longer exists, and the lien needs to be removed. Sometimes, you can get a copy of this document - from your Clerk of Court or County Register of Deeds website.

I recently had luck doing this with someone's Region's Bank Loan. And the worst they could say is - No. You still owe it.

Which brings me to my last bit of advice. You could try to settle the account for $15,000 or $20,000 -- instead of the full amount. They could be paid off for release in their interest in the property, via your Refinance. You just need a good loan officer handing your file. I would do this last, and see if you can get them to release it without $$$.