Possible to refinance? (by BS [TX]) Aug 16, 2018 12:00 PM
Possible to refinance? (by Mike45 [NV]) Aug 16, 2018 12:15 PM
Possible to refinance? (by Larry [MN]) Aug 16, 2018 12:17 PM
Possible to refinance? (by myob [GA]) Aug 16, 2018 12:29 PM
Possible to refinance? (by Ken [NY]) Aug 16, 2018 12:38 PM
Possible to refinance? (by S i d [MO]) Aug 16, 2018 12:57 PM
Possible to refinance? (by S i d [MO]) Aug 16, 2018 1:03 PM
Possible to refinance? (by Ken [NY]) Aug 16, 2018 2:50 PM
Possible to refinance? (by Nicole [PA]) Aug 16, 2018 4:11 PM
Possible to refinance? (by don [PA]) Aug 16, 2018 7:40 PM
Possible to refinance? (by DJ [VA]) Aug 17, 2018 7:06 PM
Possible to refinance? (by Oregon Woodsmoke [ID]) Aug 18, 2018 7:46 AM
Possible to refinance? (by BS [TX]) Posted on: Aug 16, 2018 12:00 PM Message:
Hello everyone! I bought a property subject to existing financing. A few days after I bought the property the mortgage holder died. I never got access to the mortgage because when I went in to the bank with the PoA, I was turned away because the person who signed it is no longer alive. I was getting away with the mortgage statements being sent to my mailing address to keep up with escrow adjustments, but now I am having trouble getting the insurance off of the property because I dont know who the previous owner was using and the banks aren't telling me because my name isn't on the mortgage. This has been causing me some headache and I was wondering if it is possible to refinance a mortgage that isn't in your name. --138.128.xxx.xxx |
Possible to refinance? (by Mike45 [NV]) Posted on: Aug 16, 2018 12:15 PM Message:
You do not refinance the mortgage. You refinance the property, and you pay off the existing mortgage with the funds from the new mortgage.
--71.222.xx.xxx |
Possible to refinance? (by Larry [MN]) Posted on: Aug 16, 2018 12:17 PM Message:
Ask the bank if they will let you assume the mortgage. That basically transfers the existing mortgage to you. The mortgage holders heirs would have to be involved. --209.237.xxx.xxx |
Possible to refinance? (by myob [GA]) Posted on: Aug 16, 2018 12:29 PM Message:
R u suggesting this was a WRAP around? If so did you have the lenders permission (doesn't sound like it) --99.103.xxx.xxx |
Possible to refinance? (by Ken [NY]) Posted on: Aug 16, 2018 12:38 PM Message:
You will refi the property and pay off the mortgage in the process.The mortgage holder did not die,the mortgage payor died. --72.231.xxx.xxx |
Possible to refinance? (by S i d [MO]) Posted on: Aug 16, 2018 12:57 PM Message:
I'm sure the proper steps to handle this are all covered in the varoius "Subject-To" guru materials for sale out there, which makes these deals sound so effortless.... (wink) Okay, I have to have a joke on this since I've always considered these deals just to the side of shady...anytime someone has to "get away with" doing something... it makes me wonder just how much we're all considering the ethics of deals?
Anyway...my personal view aside, you have a few options:
1) Contact the existing lender and ask to assume the note. Most likely you will have to qualify, and this may not be possible if the note was sold on the secondary market since they tend to frown on this.
2) Contact the existing lender and ask if they will refinance the property for you. Downside is you might not be able to get as favorable terms as the old note, or who knows you might get BETTER terms.
3) Contact another lender and do the same as #2, except of course they will pay off the original lender and you have a new loan in your name.
Of course, all three of these options are predicated on the assumption that you OWN the property free and clear of any additional liens or encumbrances except the original loan....right? You do have a Quit Claim or some other form of a Deed from the deceased former owner giving up all ownership right, and there are no other parties with a shared interest?
--173.19.x.xxx |
Possible to refinance? (by S i d [MO]) Posted on: Aug 16, 2018 1:03 PM Message:
Bw, if you can't get a loan from a traditional lender or assume the existing loan, another option would be to go with an alternative lender, such as hard-money lender or an equity partnership. If the LTV is low enough, that might work. Careful though, the rates on hard money are often high, and equity partnerships have to be carefully put together.
Still, even a short-term and somewhat expensive loan or a money partner would at least clear the existing note so the current lender doesn't exercise the due on transfer clause and force you to pay off the entire balance in 30-90 days. Then you could always refinance it again later at more favorable terms, pay off your hard-money lender or equity partner, and have the deal back to just you and your new lender.
Good luck. --173.19.x.xxx |
Possible to refinance? (by Ken [NY]) Posted on: Aug 16, 2018 2:50 PM Message:
Sid,the bank can sell the mortgage to another bank but the seller cant sell the house and leave the mortgage in place,there was a time in the 80s that there was no due on sale clauses so what makes it unethical now?.For the poster,in your situation I would consider leaving the former owners insurance in place and call it a cost of doing business and buy my own policy that would be paid but not as part of escrow and don't put the banks name on the policy,then you don't need to refi it and spend all the money for a refi and you still own the house and the mortgage is in someone elses name --72.231.xxx.xxx |
Possible to refinance? (by Nicole [PA]) Posted on: Aug 16, 2018 4:11 PM Message:
before you start asking questions, you need answers.
I don't deal in "subject to" type transactions so I don't know specifics. Since he passed away, his estate is now involved. Will there be tax consequences, probate issues, etc? Find out before asking a lender about financing. --72.70.xxx.x |
Possible to refinance? (by don [PA]) Posted on: Aug 16, 2018 7:40 PM Message:
BS and Larry: You are referring to the previous owner who mortgaged the property (and has since died) as the "mortgage holder", and your terminology is incorrect and confusing. The mortgage holder is the lending bank that holds a mortgage on the property. --73.141.xxx.xxx |
Possible to refinance? (by DJ [VA]) Posted on: Aug 17, 2018 7:06 PM Message:
When a homeowner dies with any debt, that debt is paid by the estate. If the owner died intestate (without a will), someone will be appointed by the court to administer the estate. They will have the task of selling assets, paying off debts, and distribution whatever is left to the heirs. (I have done this myself)
I assume you were given the deed to the property when you made the deal. I believe you may technically own the house free and clear, and paying off the note is the estate's/heirs' problem. This is exactly why banks don't want people to sign away deeds when they have a loan.
However, the bank (note-holder) will expect the house to be sold to pay the debt. I believe most subject-to deals are made in the case where a person has little to no equity. Do you know who the heirs are, or care if they are saddled with a large debt and no asset to sell to pay it? Your legal responsibility may be different from your moral responsibility.
It's a very interesting situation, and I do hope you keep posting what you learn/do.
If it were me, I believe I would consult my R.E. Attorney ASAP. I would also probably go to my bank (NOT the note-holder) and describe a "hypothetical" situation, and get their take on it - what legal recourse a note-holder would have against you, if any.
--68.10.xxx.x |
Possible to refinance? (by Oregon Woodsmoke [ID]) Posted on: Aug 18, 2018 7:46 AM Message:
You aren't going to get the bank to do anything with the mortgage without the mortgage holder's signiture. So, I am thinking you need to go to his estate's executor to get it straightened out. --174.216.x.xxx |
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