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Home >> Lending >> Home Mortgage
Refinancing Problem
About nine years ago we refinanced our home. We are trying to refinance again, but according to the records, there is still a lien on it from the original bank. The original bank was bought by another bank, and I cannot locate the paperwork from the original loan. We paid off the loan when we refinanced, and no one seems to have a record of us owing anything on the loan, yet I am told that there is a lien on the house. How do I resolve this issue?
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 When you closed the loan you have now, a HUD-1 Settlement Statement form should have been used. This shows who was paid what amount of money. If you don't have your copy, your current lender should. They should also be able to easily trace that the payment was sent. Your current lender also has a very big interest in getting this cleared, because they are in a second lien position, instead of a first.
What has likely happened is the lien was paid, but never released. I recommend going through your current lender to see who bought the old bank. They should be able to find this out. The bank that bought those assets will be in the position to facilitate a release for you now.
As an alternative, the lender wanting to help you with your current refinance could also help. They may need you to do more of the leg-work however, since they are not a party to the old transaction.
Published on BankingQuestions.com 5/20/08
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