Posted by B.L.Renfrow on October 03, 2003 at 07:16:06:
You wrote, “…would they see that there is another loan on the property somehow and turn the new loan down.”
Yes. It’s called a title search, in which the other liens against the property will show up. So if you are asking whether you could have two loans in first position, the answer is no.
If you could convince someone to give you another loan against the property, it would be in second position, behind the existing first. That wouldn’t be a very secure position if the house needs much in the way of repairs, so it would likely not be easy to find a lender to do this. Most hard money lenders will want to be in first position.
You ask about refinancing. Sure, it would be possible, depending on how long you’ve owned the property and your credit. But that would have to pay off the existing loan. If you’re going to do that it defeats the purpose of taking it subject-to in the first place. You might as well have bought initially with a conventional loan.
Brian (NY)