Refinancing a property with a liens

[Scott Blalock]

I purchased my first property from a family member. I put 25,000 down. And we did a quitclaims deed and I was gonna pay him the rest of the money after we refinanced. I did the remodel I have a renter. I went to go refinance and found out there is liens on the property and the credit union or banks don’t want to let me refinance until the liens are paid. But all my money is tied up into the property. There is plenty of equity in the property. Do I need to contact a lender or a real estate attorney? Is there some sort of escrow I can do to use that money to pay the lien after the sale is complete?

[Michael Magno]

The liens will need to be paid off at the refinance, as the new lender, will require a First position lien on the property. This is the problem with doing a "Quit Claim Deed" as you didn't do your due diligence, which could have prevented this. Now it's on you to pay the liens off if your "family" doesn't want to cooperate. You own the property.