Posted by Bud Branstetter on March 22, 1999 at 23:13:32:
Do not play deeds back and forth! Most any mortgage broker should be able to do this as a refi if the value is there.
Refinance a wrap - Posted by Bill
Posted by Bill on March 22, 1999 at 19:15:28:
I am looking for advice about a planned transaction.
I sold a house using a wrap-around mortgage two years ago.
Buyer has paid mortgage, taxes and incsurance since then.
Nothing was recorded.
Now the buyer it prepared to refinance the mortgage
using their name and credit and officially transfer
title to them.
The important aspect of the transaction is that the new
mortgage should be a refinance, and not a purchase mortgage.
With a purchase mortgage there would be a down payment
requirement from the lender, whereas in a refinance there
is only the loan to value requirement (LTV) criteria.
The LTV is about 70.
The transaction would go in this order: We open escrow,
the buyer gets approved for the loan, I quick claim
title to the buyer through escrow, wait a couple of
weeks, then a title report
is generated showing the buyer as the owner,
her loan gets funded, my old loan gets paid off.
In case her loan does not get funded, escrow would have
a pre-signed quick claim putting the title back in my
name.
Are there any pitfalls, or tax consequences for a deal
such as this.
Bill