Hard Money Loan - Lien on Property?

Question

Hi, everyone,

We currently have a deal that is being funded by a hard money loan. We are going to refinance it soon. My lender asked if I know if the hard money loan lender actually filed a lien against the property because, if so, we are just able to refi the amount owed; however, if the HM lender did NOT file the lien then we are able to do a cash-out refi.

Does anyone know how to know for sure if the hard money lender filed the lien without straight up asking them?

I think the information is found our county clerk's website. I found that the deed is filed online on the county clerk's website, but I'm unsure if that is equivalent to them placing the lien?

TIA to anyone's insight!

Brooke Zuniga · Answer

Thank y'all! Yes, they filed the deed of trust with county clerk's office.

Tom Gimer · Answer

Hard money lenders don't lend without security so yes, there would be a deed of trust/mortgage recorded among the local land records... and you'll need to refinance it in order for your new lender to obtain first lien position. The title company closing the refi for the lender would perform a title search, discover the recorded lien, and make sure it was paid off in full and released. Good luck.

Ryan Blake · Answer

They almost certainly did. The only reason I would think they didn't is if it was a very very small company or family friend. You can use courthouse direct to do an online search in Texas. They charge if you want to get a copy of the document but you can search on the site for free which should show the lien. The other option is to go to your county's clerk office and check for yourself.