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A credit entry and a recorded property lien are different forms of information. When they disagree, the lender and title team need to identify the actual obligation and the documents supporting its status. Neither a label nor an omission should settle the question alone.
What I asked the team to resolve
In a file review, I requested title evidence for debts marked as secured by the property. Later correspondence addressed mislabeled credit entries and, separately, utility liens. Those were distinct issues rather than one category of debt to remove from a worksheet.
The correspondence did not establish that every title issue had been cleared. Identifying a problem is a step toward resolution, not proof of completed releases.
Give each obligation its own line
Match the creditor, account, agreement and balance with any related recorded document. Ask whether a debt is being paid off, remaining in place or being reviewed for a release or subordination.
Fannie Mae’s liabilities guidance requires lenders to establish the relevant debt obligations and terms. Title review answers additional property questions that a credit report cannot resolve by itself.
Keep requests specific: which recorded item relates to this account, and what will the title company and lender require before the new financing can close?
Confirm the effect on the proposed loan
Ask the mortgage team to update its equity and debt calculations after the evidence is accepted. An unsecured obligation may still affect debt-to-income qualification even when it is not a mortgage lien. A property lien may require attention even if it does not appear as an ordinary monthly account on credit.
I would keep the open title conditions and debt calculation together during review. That helps everyone see what remains unresolved before treating an estimated equity amount as money available to borrow.
Sources and further reading
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Published September 13, 2026. Adapted from an origination discussion. Identifying details are omitted. Unconfirmed outcomes are not presented as completed loans. Program and lender requirements need an individual review. Nick Cunningham, Loan Officer, NMLS #907393. Mortgage services through Golden Bay Mortgage Group.
