As early as possible in the process, contact your solar installer and/or your solar loan lender and ask them if your solar system is secured by a UCC-1 filing. If it is, the appraiser and the mortgage lender may consider your solar system as "personal property" rather than a feature of the property, and assign no value to it in the appraisal result. To ensure that your solar system is properly valued, you have several options, including:
- Contacting the solar loan lender and ask them to suspend the UCC-1 filing. Not all solar loan lenders may offer this option.
- Tell the buyer’s lender (or the lender of your refinance) to instruct the appraiser to perform a “subject to” or “hypothetical” appraisal for the home that assumes the UCC-1 will be removed at closing because the solar loan will be paid off as part of the transaction.
- Alternatively, you can pay off the solar loan and remove the UCC-1 filing before the home is appraised.
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