I am funding this a recording project through a loan. The bank people asked me to call a certain state agency who, gratefully, gave us a 0% deferred loan back in 2006 when we had to have our home de-leaded. Repayment is due upon the sale of our house. Nice deal!

So I called to ask if they would subordinate their lien position to the bank. From what I heard I understood the answer to be: “Yes, no problem. Just fill out the form that they’d send in the mail and have the bank call them.” I relayed the message to the bank and it was all systems go.

Two weeks away from the recording date I get a letter from the agency saying our request was denied. They do not subordinate to home equity loans with adjustable rates, as I and the bank understood the message. At the bank’s suggestion I call to ask if they will subordinate to a fixed rate home equity. No – not to any home equity loan.

Hopes dashed, madly scrambling, looking at all options – talks with accountant, decision painfully reached: pay off  0% deferred loan – going utterly anathema to my fiscal intuition.

After making the call to the bank to up the amount of the home equity loan and payoff of the state agency, I go get the mail from our mailbox – another letter from the state agency: “We are writing to inform you that we received your request for subordination and your case is under consideration.”

Say no more – please.