What type of lien can still be permissible when refinancing?

The type of lien that remains permissible when refinancing is the owelty of partition judgments. Owelty of partition refers to a legal determination that occurs when co-owners of a property decide to divide their shared interest in that property, often resulting in one party buying out the other. This type of lien can be attached to the property because it establishes a financial obligation that one co-owner must pay to the other as part of the partition agreement.

When refinancing a property, lenders typically want to ensure any existing liens are subordinate to their new mortgage. Owelty liens can be negotiated in such a way that they do not hinder the refinancing process, as they are based on a legal judgment rather than a general obligation like credit card debts or unresolved court judgments. Equity lines, while potentially permissible in some contexts, can complicate refinancing due to their revolving nature, and unresolved court judgments can create significant barriers due to their potential to cloud a title and impact the lender's priority.