Faithlife Corporation

First Position

Notes & Transcripts

I recently began a refinancing of my home. Interest rates had fallen and I was trying to lower my interest rate and pay things off earlier. A couple of weeks ago, as I was facing the deadline, they called me and said I had to clear something up before they’d give me the loan. It seems that I had an equity line of credit on my home. Now, I didn’t have anything on it and there was nothing that I owed on my home but the original mortgage remaining, but they refused to finance things the way they were. I even asked them, “Hey, if I don’t have anything on this loan, why are you making me close this line of credit. The amount on the credit line doesn’t come close to the amount of equity that I have in the home.”

Know what they told me? They said, “Sir, we refuse to be in second position. If you default on this loan, we insist on being the first creditor to get paid off and, we know that your current banker will say the same thing, so if you want a loan from us, you’ve got to put us first.”

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