Reselling/Refinancing Your Home

Housing Projects Open Space Projects Leaseholder Information About DNI

A number of leaseholders have been trying to refinance their homes. Leaseholders who wish to refinance must contact DNI. We will then start the proper paper work for the refinance.

All homes on Land Trust land have to get approval from DNI before they are allowed to refinance. (This is explained in your ground lease in section 8.2.)

If a homeowner or bank does not notify DNI, then when it comes time to close, you may have to pay out of pocket expenses to the bank.

For example: leaseholder Y bought their home for $120,000. They have lived there for 10 years and they wish to refinance. If the bank does not go through the Land Trust for approval to refinance the home, and the bank refinances the home for $150,000.

Now later that year the homeowner wants to sell the home and the bank would like them to sell the property for more then $150,000 so that the refinance mortgage can be paid off. DNI because of the extended period ground lease limits the sell of the home for $130,000. The homeowner is responsible for the $20,000 to pay off the loan and will not have any funds from the sale of the home.

DNI does not want to see homeowners in this position and have put preventive measures in place to stop this. Banks that have done refinances understand the restrictions that come with a Community Land Trust ground lease. If you have refinanced without DNI or if you are interested in refinancing please contact Jason Webb.