Removing Liens From Real Estate


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A Question From One of Matt’s Readers-


“I am a mortgage banker. I am doing a streamline refinance for a customer of mine. We are refinancing with the same investor he refinanced his loan with 2 years ago. Since then he has had a lien put on his property. he is making payments on this lien. What will the investor need to satisfy the transfer of title?”


Matt’s Answer-

I  don’t have all the facts I might need, so I am going to make some assumptions.  If my assumptions are wrong, let me know.  I’ll change my answer, if the new facts make a difference.


I assume that the lien holder is not the investor.  I am not sure what you mean by “What will the investor need to satisfy the transfer of title?”  I assume that your questions concern how to complete the refinancing of this property, because the first financing obligation is now due and must be repaid.


If the investor holds a first mortgage and that mortgage is superior to the lien, I would simply extend the term (time period) and modify the provisions of the existing note or whatever other financing mechanism was used for the first financing.  Read the mortgage, if it exists, to make sure that it contemplates loan extensions, renewals, etc.  Make sure the mortgage is recorded.  And make sure the mortgage has priority over the lien.  These are things that will protect the investor, which should make the refinancing easier to complete.


If there is no mortgage and/or the lien has priority, I would need much more information to determine whether the lien poses a significant threat to the investor.  If the investor is not comfortable with the risks the investor is taking in refinancing your client’s transaction/property, then you’ve not created a win-win scenario.  By helping the investor, you’re helping your client.  All good deals are win-win deals.


I only believe in win-win deals.  If one party to an agreement or transactions is treated unfairly, then that is a bad deal.  Lawyers are the only ones who get rich trying to resolve, correct, undo or fix bad deals.  So, strive to create only win-win transactions and business relationships.


Finally, consult with a local attorney.  I’ve discussed general concepts here that might be impacted by state or local law.  I think you’re in Georgia.  If you need help finding a good lawyer in Georgia, please let me know.  I’ll try to help you with that.


I hope this helps.  Thanks for the question.

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