Stupid question...regarding second liens.

slc2053April 24, 2007

We have a mortgage our primary residence. We bought some vacant land and have a loan for it as well. We are now getting a home equity loan to do some improvements on our primary residence, however the bank (other than the one holding our primary mortgage) is asking us if the loan for our vacant land "is tied" to our primary residence. I'm assuming they are asking whether or not we used our home for collateral to purchase the land, which we didn't. The bank said "just fax us your tax bill for the vacant land" and that will SHOW that it is not "tied" to your home mortgage.

Now, my question is will my tax bill show this? I looked at it and I don't see how this proves that our vacant land loan isn't tied to our primary residence.

What paperwork would show that we have a second lien (if that is what they are asking) on our primary residence??

Thanks

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Chemocurl zn5b/6a Indiana

Now, my question is will my tax bill show this? I looked at it and I don't see how this proves that our vacant land loan isn't tied to our primary residence.
I'm with you on that one, though I suppose tax bills in different states 'could' reflect different info, just as a car 'title' will reflect the leinholders (or they used to anyway).

I would think that the facility who has your loan for the vacant land could answer your question, and provide a copy of any necessary paperwork. Have you tried talking to them yet?

Sue

    Bookmark   April 25, 2007 at 8:27AM
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saphire

Good point Sue and I would be careful that they are also not trying to get a lien on your second property. They may want the tax bill so they can add the lot numbers to the mortgage. Is your vacant lot next to your property or is it someplace else? If it is someplace else I would be reluctant to give them much information unless I knew why and what they were really asking. They may be asking if the vacant lot secures your first mortgage. If you do not have a mortgage on the vacant lot I would be really careful

    Bookmark   April 25, 2007 at 1:02PM
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davidandkasie

all they have to do is run a title search on your home. this will show any and all leins against it. they have to do this anyway to do the loan.

the only thing that can happen if you refuse to provide them with the documents they want, is they can and in most cases will not do the loan. then you have to start over elsewhere. unless you feel it is an unreasonable request, give them any paperwork they want.

    Bookmark   April 25, 2007 at 1:31PM
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saphire

The issue was not a title search on his existing home but on vacant land which I presume is not located near his home. I again presume this vacant land is not mortgaged or if it is mortgaged has a separate lender and is not connected to his original loan or property. While it is worthwhile to disclose the land as an additional asset, it is not something this lender should be allowed to access anymore than it can access the OPs car for security!

No one is saying do not provide them with documents, simply to read everything you sign carefully to make sure you are not mortgaging more than you intended to and also to fully understand what is being asked

    Bookmark   April 25, 2007 at 4:02PM
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quirk

I would guess that they are making sure the lot is not the same (or part of the same) land that your house is built on. The tax bill will define the lot and they will see that they're separate pieces of land.

    Bookmark   April 25, 2007 at 4:12PM
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