Solar panels installed on or around homes have grown in the New Mexico region, which is positive. The negative part of solar panels is that most Albuquerque homeowners don’t realize that when they finance or lease these panels, it affects their home’s title and is considered a second mortgage.
At Indigo Mortgage, we want to educate you because when homeowners wish to sell or refinance, having solar panels can affect the amount of available equity. Solar companies will tell consumers their loan for the panels are not technically a lien, but rather called a UCC-1 which stands for Uniform Commercial Code. All lenders consider it a lien as it will appear on the home’s title.
If a person is selling the home, they need to know how the solar panels will affect the title if there is a balance remaining. If you’re planning to refinance, borrowers need to be prepared to either pay those solar panels off or have the lender release that lien for the lender to refinance.
The moral of the story is to tell your Indigo Mortgage broker about any solar panels on your property. Selling or refinancing your Albuquerque home can get complicated, but when you call Indigo Mortgage, we will make every effort to help you through the process.
Indigo Mortgage is your trusted local mortgage broker, and we’ve been serving Albuquerque, Rio Rancho, and all of New Mexico since 2003. Call us today at (505) 836-5700.