Can You Refinance With a Tax Lien? Do Liens Affect Mortgage Refinancing?


Can you refinance a mortgage with a tax lien? If you’re dealing with issues from the bank, it can get worse over time. It’s best to fix these problems fast. Find out if this is possible.

Today I’ll answer to your question, “Can you refinance a mortgage with a tax lien?”

I’m Ted Thomas, and I’ve been involved in real estate for decades.

For the past 30 years, I’ve specialized in tax lien certificates and tax deeds. I made that change because tax liens and tax deeds are low-risk investments with high rewards.

Would you like to buy mortgage-free homes for pennies on the dollar? Or earn outrageously high interest rates secured by real estate? Then you don’t want to miss this FREE class. Change your life today!


I hope you aren’t experiencing financial troubles. Many who now have money problems are trying to refinance their way out of the problem. In other words, they want to take on more debt.

The television and the loan companies that sponsor those commercials encourage people to take on more debt when they have economic challenges. There are a lot of people showing you how to get more money.

I’m not a preacher of doom. I know what it’s like to have money challenges.

The answer you want is in this article. However, if you are refinancing and taking on more debt, it’s probably wise to think about reducing your debt and maybe shrinking your lifestyle and reducing your obligations.

I tell people debt is good if you are using the new debt to grow financially. On the other side, debt is a huge burden if you are taking on more debt to pay old bills.


can you refinance with a tax lienProperty taxes are a debt that never goes away. The second you pay the property tax; the county treasurer renews the property tax instantaneously for the next year.

Are you ready income wise to handle more debt? Or should you be cutting, reducing your burdens? Delaying paying off the burdens will only get worse.

Today I’m answering the question: Can you refinance a mortgage with a tax lien?

Give my answer some serious thought. More than anything, I’m not a preacher, and I’m not an attorney, CPA, broker or financial planner. I’m really just a prepared tax lien certificate and tax deed auction buyer.


If you have a tax lien filed and attached to your property, you are in trouble.

You are in big trouble with the bank that funded your mortgage. The bank’s money is now in jeopardy. What do I mean by that?

Mortgages in the eastern part of the United States and deed of trust documents in the south or west all contain clauses. The clauses are sometimes called covenants, and the covenant is a promise.

If this is interesting to you, I have a free mini course on how to buy property with delinquent taxes. It’s a free gift from me to you that will teach you the secrets of tax lien certificates and how to profit in tax deeds.


When you borrow on a property, you sign a loan document, maybe it’s a mortgage or a deed of trust. Within those documents, clearly outlined are covenants.

For example:

• You will make monthly payments.
• You will pay property taxes on time and keep them current.
• You will pay your casualty insurance.

The above three covenants are in every mortgage or deed of trust. Your problem is you are now in default of the loan document if a tax lien has been issued on your property.


Does a tax lien take precedence over a mortgage? Yes.

The bank or lender can start a foreclosure action immediately as their collateral is in jeopardy because the tax lien certificate has a priority in payment in front of any loan document.

The point I’m making is that the bank’s security interest has been jeopardized.

So can you refinance a mortgage with a tax lien? Surprisingly, the answer is yes. There are mortgage companies that help with tax liens. However, you’d better do it carefully.

can you refinance with a tax lien


Assuming your income has improved and you earn significantly more, you haven’t taken on new debt and you can truly afford to make more in higher payments, then another lender may consider lending on your property and paying off the old loan and the tax lien.

Yes, you can shop for bargains with new lenders that have maybe less stringent criteria and are willing  to lend to you for a higher interest rate, points and fees.


What I’m suggesting is that an alternative lender with a more aggressive lending style would like to make a new loan to pay off the old loan and give you enough money to pay the taxes.

They would charge points and fees. However, you would solve the problem.

Going back to my original first paragraph, I don’t suggest people take on more debt to pay off old debt.


We hope you enjoyed Ted’s lesson, “Can You Refinance With a Tax Lien?”

A tax lien on your property can put you in trouble with your bank. Since a tax lien takes priority over a mortgage or deed of trust loan, the tax lien puts the bank’s collateral in jeopardy.

Therefore, the bank may decide to foreclose to protect itself. The bank can do this because in the loan document that you signed were clauses called covenants, and you would be in default of these if you had a tax lien on your property.

So can you refinance with a tax lien? Yes, it’s possible that another lender may agree to do so if your income has significantly improved and you haven’t taken on more debt. However, expect to pay a higher interest rate, points and fees.

If you’d like to know how to invest in tax delinquent real estate, there’s no one more qualified to teach you than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing.

Ted Thomas is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal one-on-one coaching.

Ted Thomas classGet started today at no cost with Ted’s FREE Master Class. It’s only about 1 hour of streaming video and will open your eyes to the incredible opportunities available in tax lien certificates and tax deed investing.

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Ted Thomas

Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.

The Ted Thomas Difference:

  • Ted is recognized as America’s Tax Lien Certificate & Tax Deed Authority and has been helping people with investing in tax defaulted properties for over 30 years.
  • Ted has built a team of certified coaches that have 70 combined years of auction experience and are available to his students by phone to guide and mentor you to avoid getting overwhelmed or worse, losing money
  • Ted has ironclad PROOF that what he is teaching you does work. With hundreds of successful students providing testimonials and a 4.9 Google rating which is unheard of in this industry.
  • Ted and his staff don’t hide behind a website; they can be reached during office hours at 321-449-9940.

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