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I found out that that I have a lein on my morttgage from unpaid taxes will this affect my refi?

by jdhildeb444 from Kingman, Indiana. Oct 19th 2020 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,336 contributions

Yes, it is very likely the tax lien will impact your refinance. Most, if not all lenders are going to require you to pay the past due taxes as a condition of the new loan. DO NOT pay these directly to the taxing authority. In most jurisdictions, there is a lag time between when you pay them and when the tax records are updated. Instead, coordinate the paying of the taxes as part of the escrowed transaction. This way, the Escrow company is certifying to the new lender that the taxes have been paid. If you have the funds to pay the taxes, you will want to let your lender know that you will be bringing those funds to escrow and your loan can fund as a non-cash-out loan. If you do not have the funds to pay the taxes, yo may be able to roll the taxes into the new transaction, but most lenders will trat this as a cash-out loan, which are priced higher. Either way, get the taxes paid so you don't lose the home to a Sherriff's sale. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We've got you covered. NEXA Mortgage is licensed in 46 states ~ 480-889-9000.

Oct 19th 2020
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,535 contributions

Unfortunately yes, the lien on your property will cause issues on your refinance. Past due taxes can cause a county to take the property. Needless to say, lenders don't like that, and will force you to pay it current to do a new loan. If there is enough equity, most people will just roll the past due taxes into the new loan amount to get caught up. I lend in WI, IA, MN, ND, and SD. Find me at - NMLS 274132

Oct 19th 2020
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