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Can you get a home equity loan if you have a lien on your property?
Wiki User
∙ 14y ago
If the property was to be used as collateral then it is not possible to obtain any financing regardless of the reason until the lien is satisfied or removed by the court for a valid reason.
If the property was not to be used as collateral it might be possible to secure a personal loan, but the interest rate and terms would most likely be prohibitive.
The above answer isn't correct. Many lenders will allow you to place funds in escrow to cover the amount of a disputed lien claim. Moreover, in most states a lawsuit to enforce a mechanic's lien must be filed within a certain period of time or the lien becomes invalid. It is dangerous to generalize. For specific advice on legal matters, specific facts are required.
Wiki User
∙ 11y ago
Wiki User
∙ 14y agoMost home equity loans take 2nd lien behind the first mortgage. I'm going to assume that you have a first mortgage with a lien behind it and are seeking a home equity loan. If you want your home equity loan to close, you'll either need the existing 2nd lien to subordinate to your new home equity line of credit. In other words, it would have to allow the home equity line to be second and it would have to move from 2nd to 3rd. Without their consent in doing this, you'd have to pay them off to get the home equity line of credit.
Wiki User
∙ 15y agothey will but only if you dont spell loan like lien....
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Can you get a home equity loan on your rental property?
If you are renting the property from someone else and do not own it, no, because a home equity loan is like a mortgage. The lender has a lien on the property if you default on the loan. If you are the owner of a property and rent it out, yes you should be able to get a loan with the property as security.
Can you transfer the lien from your home equity loan to another property you own?
No, you cannot "Transfer" the loan. But you can take out a loan on the other property and use it to pay off the first.
Is a home equity loan considered a lien?
Yes
Can a lien be temporarily lifted and then reinstated?
Yes, if the lienholder agrees to lift it. It is commonly called a postponement or subordination. This is very common in fact. If a person buys a home with a mortgage, that mortgage is a first lien. If the owner then takes out a home equity loan, that is a second lien because it was placed on the property after the first mortgage lien. Next, if that person refinanced the first mortgage, the new loan would pay off the first, eliminating it and giving the home equity loan the first position. The new loan would be in second position because it comes after the home equity loan. But the refinancing company would not agree to the refinance unless the home equity bank agreed to postpone or subordinate its the second lien and let the new refinanced loan become the first lien. The home equity bank would sign a document agreeing to allow the refincing bank get into first place. The home equity loan would then drop back into second place just as it had been before. In a sense the home equity lien has been lifted then reinstated. So it can be done but only with the lienholder's consent.
Do you have to be the owner of the home to get a home equity loan?
AnswerYes. Only the owner of the property can legally sign it over as collateral for a loan. The owner owns the equity in the property.
What are the qualifications for a home equity loan?
The typical qualifications to take out a home equity loan are, you must have sufficient equity or collateral in your property, this is the difference in what your mortgage balance and home value's is.
How do you apply for an equity loan?
To apply for an equity loan you have to contact a mortgage or home equity lender and see what kind of equity your home has. If your property value has declined it is possible that you could have negative equity.
How can an interest on personal or credit card loan spent to purchase a home be made tax deductible?
One of the conditions for deducting mortgage loan interest is that the loan must be secure by a properly recorded lien on the property. If the person or company giving you the loan is not getting a lien on your property, you cannot deduct the interest. There are also several other conditions. Take out a home equity line of credit instead.
What loan is best to pay off the balance of a home equity loan after the sale of the house?
There should be no balance. The sale of the home will probably wipe out the balance of the home equity loan if there is negative equity. Depending on your state, a home equity loan lender may ask for funds from the seller in order to release their lien, especially if the the funds for the home equity loan were used for non-home improvement items. The lender may ask for funds from the seller in order to release their lien in these cases. Can they legally? Possibly. There is a federal forgiveness bill that was passed as far as taxation goes, but there is criteria that has to be met.
Can you get a home equity line of credit to buy a home?
No. You must apply for a purchase money mortgage if you do not already own any home. If you already own a property and have enough equity in that property, you can take a home equity loan on that property and use those proceeds to purchase another property.No. You must apply for a purchase money mortgage if you do not already own any home. If you already own a property and have enough equity in that property, you can take a home equity loan on that property and use those proceeds to purchase another property.No. You must apply for a purchase money mortgage if you do not already own any home. If you already own a property and have enough equity in that property, you can take a home equity loan on that property and use those proceeds to purchase another property.No. You must apply for a purchase money mortgage if you do not already own any home. If you already own a property and have enough equity in that property, you can take a home equity loan on that property and use those proceeds to purchase another property.
How do you get a payoff figure on existing equity loan for sale of real property?
Contact the lien holder. A simple phone call.
Are home equity loans harder or easier to obtain than other types of loans?
A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower uses the equity in their home as collateral. These loans are useful to finance major expenses such as home repairs, medical bills or college education. A home equity loan creates a lien against the borrower's house, and reduces actual home equity.
