Let’ s say I just bought sub2 and want to refi. What I owe meaning sellers mortgage is 60k back of market value… How would you as a mortgage broker handle it once you found out it isn’t my mortgage. Credit good, and I want cash back at closing. Loan fee’s in loan and no prepayment penalty and will own less than 6 months. Possible HELOC ??
Darin
As long as you have a subject 2 contract and cancelled checks to prove that you have been making the payments you should be fine for a refi. The question is why spend the money to refi if you will only have the house six months?
Good Question Chris,
Let’s say I needed the cash for another project, and I am retailing the sub2 property so it may take more than 30 days to sell, But by working with YOU “Mortgage Broker To The Stars” I most likly could end up with 30k in less than 20 days.
What say you, Darin
I would say that you have a very good chance of refinancing the property and pulling cash out. As for the HELOC I think that would be more difficult because it is a second lien on a property in which you are not on title.
Well,
I would be on Title but not on mortgage, Hence the dilema.
Not many Mortgage brokers have seen this I’m sure. What do you think some of your underwriters would say/do ? Thanks Chris,
Darin
Sorry I meant mortgage.
I think it is a great scenario, but there are just so many what-ifs that I think UW are so afraid of a buy-back right now that they would not take a chance on it. How long have you been on title?
I use sub2 for short term holds, rehab resell ,wholesale or assign with new buyer having new financing.
The longest has been 6 months through winter, 4 feet of snow!
I’m not currently looking to refi anything , just wondering how side ways UW’s would get looking at a file w/sub 2 financing…and if they would proceed. I’m guessing yes on refi but on a HELOC …
Thanks, Darin
I think they would run to the hills if something like this came across their desk. :shocked