Recording Of Lien Position
First Post!!! - I have refi'd my mortgage consolidating 1st and 2nd to qualify for a bank HELOC which needs to be in the 2nd position. The HELOC is for investing purposes. My bank advised to wait for the refi to be recorded before apply for HELOC, and I asked the reason. Their answer, "Since we just did the refi. If we go ahead and do the HELOC, the HELOC might get recorded as first lean by accident because the process probably will only take 3 days now since we've gotten everything from you already. In that case, the refi won't be recorded as first lean position (human error could happen). When you tried to sell your home, the title company will request to have both leans re-recorded correctly and it might delay the closing. Another reason is the refi might not even get booked if there has been a first lean on the title already. " If I go ahead with the HELOC, will I put myself into unnecessary liability?
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