Sometimes title companies will call or contact old mortgage companies about releases. 

They may well be liens associated with old mortgages that have not been properly released.  

You would have to make it work within the lender's LTV requirements so you're right that they wouldn't be lending 100% LTV.As for the reason why, it might be an extended family member, or some other side agreement that you have with the sellers, or whatever.

We let one go and the other one agreed to list the home with a "Short Sale Broker" who eventially sold and closed the property giving us $8,000 to step out of the way and release our DOT and now we have a $1,000 profit.   

We were able to extend our liability coverage to cover the site. 

(hate the ceiling pull down.) maximize all arenas. laundry and other such zones with slatted shelving that extends up. the slats keep it light while allowing extra space for things used not so often. slatted shelves behind doors in bedrooms etc. when appropriate. instant hot water tanks save space. keep living spaces open for an airy feel. 

What would you say to a lender who wants origination fee sent to him before the loan funds are released?

Either that or contact the mortgage company and pay them to release their mortgage.Ray 

I know tons of 2nd mortgages had their liens released by the banks a few years back.

I have started using promissory notes and deeds of trusts with my private lenders.I would see if she is willing to extend the terms for you to a 24-month note.