The lender should not care how you get the lien paid, just that it is paid before they lend to you.
As to hard money, if you are still looking send me an email.
I do think you would be better off with a conventional lender after the lien is settled but maybe there is more to the story then what has already been revealed.
I have a rehab I am trying to get financed and I am running into trouble because I have a tax lien on my credit report. The mortgage brokers want it paid for and removed and so do I. This rehab would pay off all my debt and then some. At this point I think I might need a private investor, partner, or a hard money lender. I have been looking around my area and could possibly find private money or a partner but a hard money lender is not so easy if at all. Any suggestions would be appreciated very much. Thank you.
Why not have a private investor lend you the money to pay off the lien. This way you can still take advantage of more favorable terms you will likely receive from the bank as opposed to a hard money lender. You can attach a second mortgage to the rehab as security and pay off the investor with the ‘then some’ you have coming from financing the rehab. Just a thought.