Understanding PACE LIEN Removal for Homeowners

What is a PACE Lien?

Property Assessed Clean Energy (PACE) financing is a popular way for homeowners to fund energy-efficient upgrades to their properties. However, it comes with a unique form of lien known as a PACE lien. This lien is attached to the property itself, rather than the homeowner, and is repaid through property tax assessments. While this can be a great way to finance green improvements, it can also complicate matters when it comes to selling or refinancing your home.

Understanding how to remove a PACE lien is crucial for homeowners who wish to maintain flexibility in their financial and real estate decisions. This guide will walk you through the essentials of PACE lien removal, helping you make informed choices for your property.

Why You Might Want to Remove a PACE Lien

There are several reasons why you might want to remove a PACE lien from your property:

• Selling Your Home: A PACE lien can complicate the sale process. Potential buyers may be hesitant to take on the additional financial burden.
• Refinancing: Many mortgage lenders require the PACE lien to be paid off before approving a refinancing deal.
• Financial Flexibility: Removing the lien can provide you with more flexibility in your financial planning and property management.

Steps to Remove a PACE Lien

Contact Your PACE Provider

The first step in removing a PACE lien is to contact your PACE provider. They will provide you with the payoff amount, which includes the remaining balance on the loan and any applicable fees. Make sure to request a written statement for your records.

Secure Financing

Once you have the payoff amount, you'll need to secure financing to pay off the lien. This might involve taking out a personal loan, using savings, or leveraging other financial resources. Ensure that you have the funds ready before proceeding to the next step.

Make the Payment

After securing the necessary funds, make the payment to your PACE provider. Keep all receipts and documentation as proof of payment. This is crucial for the next steps in the lien removal process.

Recording the Lien Release

Once the payment is made, your PACE provider will issue a lien release document. This document must be recorded with your local county recorder's office to officially remove the lien from your property. Check with your county recorder for specific instructions and any applicable fees.

Verify the Removal

After the lien release is recorded, verify that the lien has been removed by checking your property records. This can usually be done online through your county recorder's website. If you notice any discrepancies, contact your PACE provider immediately to resolve the issue.

Consult a Professional

Removing a PACE lien can be a complex process, and it may be beneficial to consult with a real estate attorney or financial advisor. These professionals can provide personalized advice and ensure that you navigate the process smoothly.

Understanding PACE lien removal is essential for homeowners who want to maintain control over their property and financial decisions. By following these steps, you can successfully remove a PACE lien and enjoy greater peace of mind.