cancel
Showing results for 
Search instead for 
Did you mean: 

NACA $25K silent lien - can it be 'bought out'?

tag
Anonymous
Not applicable

NACA $25K silent lien - can it be 'bought out'?

We have a NACA mortgage that's a great interest rate, and we're wondering what our options are as far as removing the silent second. We're considering taking out some equity and wondering what our options are. I seem to recall that you can request permission to take out a second, but considering the exercise in patience that is NACA, I don't know that I have the strength to go through that hurdle. I know we could refinance the entire loan and abandon our NACA relationship, but we have no intentions to sell the home before the 30 year mortgage is up, so we'd actually come out ahead financially (by a long shot) buying out the $25K lien rather than refinancing the entire mortgage. Is this permissible? Can you pay off the $25K lien, ending your relationship w/NACA, while keeping the mortgage you obtained through NACA?

 

Also, I can't seem to find the lien paperwork in my mortgage file. It's been a few years, so it's possible I filed it elsewhere, but this file has all the other closing documentation, so I can't imagine why I would have put the lien documents elsewhere. What is the document called or what might it look like? Would I be able to obtain a copy through the county recorder? I'm in California, if that makes a difference.

Message 1 of 16
15 REPLIES 15
iv
Valued Contributor

Re: NACA $25K silent lien - can it be 'bought out'?


@Anonymous wrote:

Can you pay off the $25K lien, ending your relationship w/NACA, while keeping the mortgage you obtained through NACA?


No.

 

You can refi to remove the lien.  But you can't keep the NACA -arranged loan without keeping the lien.

EQ8:850 TU8:850 EX8:850
EQ9:847 TU9:847 EX9:839
EQ5:797 TU4:807 EX2:813 - 2021-06-06
Message 2 of 16
Anonymous
Not applicable

Re: NACA $25K silent lien - can it be 'bought out'?

Hello FindingMyWay,

 

The $25,000 lien exists as an enforcement option for those who break our owner occupancy requirement and to prevent predatory "second mortgages". Buying out the lien is not an option.  A re-fi would be your only option.

 

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

Message 3 of 16
R2P2home
Valued Member

Re: NACA $25K silent lien - can it be 'bought out'?

What happens when you live in HOA and they just got city water hooked up ? Meaning if you dont have 6900.00 spare change to be forced to be hooked up or they will put a lien on the property? A second lien? Or walk away? 25000 from Naca, 6900 from HOA, hmmm Is this a subject Naca might lift a lien?
Message 4 of 16
R2P2home
Valued Member

Re: NACA $25K silent lien - can it be 'bought out'?

Houses in the neighborhood are popping up for sale all around me, I did everthing on my end to disclose all on my end, realtors / inspectors job to also listen when I thought this could happen
Message 5 of 16
R2P2home
Valued Member

Re: NACA $25K silent lien - can it be 'bought out'?

Its all there in black and white when i bought the home
Message 6 of 16
R2P2home
Valued Member

Re: NACA $25K silent lien - can it be 'bought out'?

An error in my message?
Message 7 of 16
R2P2home
Valued Member

Re: NACA $25K silent lien - can it be 'bought out'?

Dear Mr Trumble,
I would really like for you to weigh in on this matter!
Message 8 of 16
R2P2home
Valued Member

Re: NACA $25K silent lien - can it be 'bought out'?

Would that be because BOA or the other back the loan ?
Message 9 of 16
R2P2home
Valued Member

Re: NACA $25K silent lien - can it be 'bought out'?

Oh so BOA refis the loans????
Message 10 of 16
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.