Does anybody have experience with partial lien releases?
Here is my situation:
I bought a property 4 years ago. It included two large lots (almost 3 acres total). One house on one lot and another (small guest house) on another lot. Both lots were included with the loan with countrywide and it is at 5.25% interest.
My current loan balance is about 50% of the value of just the one lot with the small guest house.
What I am trying to do is have Countrywide release the second lot from the lien. and then take a separate loan on that to pull out cash. But leave the first loan intact to keep the low interest rate.
I contacted them and they sent me the paperwork, but now it looks like this will cost me almost $2,000. (Silly me, I thought they would do it for free.) I need 2 appraisals, 2 surveys and nonferundable $500 for the review.
I was thinking that they might want to do this so that they can give me another loan, but the instructions say that it is up to the investor who owns this loan to make the decision and they may still request additional information. I can’t think of a single reason why the investor would do this, especially with the market the way it is.
Any thoughts on this?