Home Buying in 92626>Question Details

Vicbail, Home Buyer in Costa Mesa, CA

Is it possible for a buyer to refinance a mortgage if the buyer assumed a non-assumable mortgage?

Asked by Vicbail, Costa Mesa, CA Fri Feb 15, 2013

If the seller and buyer agree that the buyer is to assume the mortgage, can the buyer refinance the non-assumable loan?

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Kim M. Eisen’s answer
That's why you have to love real estate, challenges always keep you on your feet. There isn't complete information in the question, so making assumptions I would . . .
1) Get the buyer approved for a new loan
2) Is the title in their name? Then it's a refi. If not, then a purchase agreement of some sort should be given (or created) and given to lender.
3) Tell title/escrow not to ask for payoff from bank until its absolutely necessary so as not to accelerate anything (and only after you have financing approval).

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"Helping people make smart real estate decisions since 1980"
0 votes Thank Flag Link Wed Jun 5, 2013
BEST ANSWER
As long as you can prove "the continuity of obligation" ie; one year of cancelled checks demonstrating you have been making the payments, yes, you can refinance the mortgage that you , basically, took over payments on.
The new lender will also want to get a mortgage rating from the current lender to verify those pay,nets have been made on time.
With the proper packaging and thorough explanation to the new lender, you should be fine.
0 votes Thank Flag Link Sat Feb 16, 2013
If it is non assumable, that is called a wrap around, yes you may.

You need a lender who knows what they are doing.

I can help you with that.

Rich Littlefield
949-297-1207
NMLS 287206
0 votes Thank Flag Link Fri Aug 23, 2013
The process gets a tad sticky with documenting history and the title work but yes.
0 votes Thank Flag Link Mon Aug 19, 2013
Sounds like the buyer purchased the home "subject to" the loan. Otherwise, they would have assumed it. There shouldn't be any problems refinancing so long they qualify with the new lender. "due on sale" or not they have not enforced and buyer/owner is paying it off through the refinance anyways.
0 votes Thank Flag Link Wed Jun 5, 2013
Contact brentwood pacific financial for a step by step process to refinance.the phone number is 714-771-3800
0 votes Thank Flag Link Sun Feb 17, 2013
You've received some great answers so far ! I have a question however, does the current mortgage have a "Due on Sale" clause and if so, what if the Note holder accelerates and demands payment in full immediately?
0 votes Thank Flag Link Sat Feb 16, 2013
Vcbail:

Yes, through proper documentation. I can have the property refinanced prior to March payment. I will need a few details, in addition, you may qualify for certain Fderal programs.

Castle & Cooke Mortgage is a direct lender & our office is located in Newport Beach. Give me a call on my cell to discuss. I'll be available all weekend. (949)212-4578

Best,

Grant Fawcett
Mortgage Banker
Castle & Cooke Mortgage
Ph: (949)212-4578
0 votes Thank Flag Link Sat Feb 16, 2013
Claudia makes a good point here. If that does not work, then if you want to refinance the loan, you should buy the property. This would mean that you would complete a purchase agreement (either with or without a real estate agent). Once accepted you could use the document to apply a new mortgage. The closing could take place at a title agency. The original loan would be paid off in its entirety and your new (and most likely cheaper) loan would take its place.
0 votes Thank Flag Link Sat Feb 16, 2013
Vic

If the loan was non-assumable, then how did you assume it? If you have not assumed it, only agreed to do so, then it is impossible for you to fulfill the agreement and the seller cannot hold you to it.

Just where in the buying process are you? Did you not have a Realtor(r) representing you? Even when buying a FSBO, you should still have someone representing you - if that's the case.

Contact me and let's see where you are and what can be done.

Tim Kunze, Realtor(r)
Focusing on ... YOU!!!
Huntington Coast Properties
714-552-2335
Tim@TimKunze.com
0 votes Thank Flag Link Sat Feb 16, 2013
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