Posted by Tony-VA on July 09, 2002 at 16:58:07:
The Lenders look at “refinancing” for those who are currently on the Deed. You are not on the deed. You simply have an option to purchase, thus you would have to find a loan to purchase, not refinance.
Your advisors were correct in that you could sell the option or sell the home (simultaneous close).
You state that the note is being held for you by a private investor until you can secure the loan. It appears you may be mixing words.
If you have a lease with option to buy, you do not have a note. You have me a bit lost here. Are you trying to say that the current owner has an underlying loan with a private investor? If so, will they allow you to assume it?
You may want to explore the idea of taking this property “subject to” the existing mortgage. This will depend upon your seller’s motivation. Subject to would have them deed the property to you. You may then have an argument for the banks to provide you with a Refinance Loan. I am not certain if the Lenders would want you to be on title for any stated period of time or not but at least you would be on the deed. Something to consider but not lightly. Make certain you understand how Subject to works in detail before attempting it.