Waverly dance
Friday, December 22, 2006
Home Equity Loan - Beware of the lingering lien!

A problem that often originates when people seek to refinance their home is the discovery of a pre-existing lien from a former loan that was not removed by the lending company. The cost of removing a lien and returning the statute title to the homeowner, a procedure known as reconveyance, is usually included in fees associated with a home equity loan. When the loan is paid off, the lender is generally responsible for removing the lien, so that public records demo the property to be unencumbered. There are assorted grounds for why the lien isn’t always removed – inadvertence on the portion of the lender, especially during heavy time periods of refinancing, is often the problem. Occasionally, the problem can originate when a lender is sold to another company or when that lender travels out of business. No matter what the cause, a lien that hasn’t been removed can come up back to stalk a homeowner. If a homeowner is in the procedure of refinancing a home and discovers an old lien that hasn’t been removed, the full refinancing procedure can be held up for weeks. This tin be critical if the proprietor is trying to lock in an interest rate prior to closing. The problem can also originate when a homeowner is trying to take out another home equity loan, perhaps to ease debt consolidation or home improvements. Here are a few things you can make to avoid this problem: Get a transcript of your credit report. If there are any errors, particularly mistakes showing an unfastened line of credit or a home equity loan that have been paid off, contact your lender. Keep your paperwork from all existent estate loans, even if you have got already paid them off. Then you will have got got got got them at manus should you need to demonstrate that you have fulfilled your obligations. If the lien shows up on public records or a credit report, but the original lender states that you have paid it, have them direct you a transcript of their certification regarding your reconveyance.As with most issues that come up up when funding or refinancing a home, this 1 can be resolved by remaining diligent and keeping proper paperwork. As always, it’s A good thought to check your credit report regularly, particularly if you be after on taking out a loan in the close future.

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