Refinancing a 2 and 3rd mortgage

[ken hamm]

I live in California, I had a delay on the signing of my second due to a delay in paper work from the lender. In anticipation of the paper work for the 2nd being ready any day I signed papers for a 3rd mortgage hoping that I would be able to complete the 2nd mortgage transaction before the 3rd funded. The 3rd funded today and I am supposed to sign papers for the 2nd tomorrow. What problems could I encounter.

 

[HomeGuru]

If the 3rd recorded, then the 2nd may not fund unless the 3rd subordinates to the 2nd. Because once the exsitisng 2nd is refinanced, it comes off title and the 3rd moves in to 2nd position.
Whomever is doing the escrpw on this must be very careful.

 

[ken hamm]

Thanks, so If the lender of the 3rd takes enough time to record, and the lender of the 2nd is faster in recording, I will be ok?

 

[HomeGuru]

As long as the existing second mortgage retains the 2nd lien position. How would you like it if you were second then all of a sudden you end up third. I hate when that happens when I need to be feed and Mama Bird ran out of worm.

 

[ken hamm]

Thanks again. It looks like the lender for the second is going to record first, if not, the lender of the 3rd has agreed to subordinate. I was freaking for awhile there.

 

[HomeGuru]

Ok good. Another happy ending.