Posted by JohnBoy on March 20, 2005 at 20:38:26:
If your lender didn’t put a lien on your title then all they have is an unsecured loan. Meaning you have clear title to the home. Since you have clear title you have the asset free and clear to secure as security against a new loan.
I don’t understand what the problem is with other lenders saying you have nothing to refinance??? You have CLEAR TITLE to your home!
Don’t ask about refinancing. Just tell them you want to borrow X amount and use your home as security to secure the loan with. Then once you get the loan just pay off your other loan.
The only problem I see here based on what you said is that your lender messed up by not putting a lien on your title to secure their loan! Now all they have is an unsecured loan with nothing to repo if you did not make the payments. And they refuse to add themselves as a secured creditor??? They sound like idiots to me!
Just apply for a new loan and offer to pledge the title of your home as security. The other loan is just an unsecured loan. When asked what you want the loan for just say you want to pay off your unsecured loan you currently have to get a lower rate, better term, get some extra cash out or whatever your reason was for wanting to refinance.