Follow Question to Can anyone figure out how to refinance me???!!
Below is the question I posted yesterday, thanks for all the responses. If I can get the seller to refinance the loan with Harp and add my name to the loan can I remove his name later down the road? I'm looking at the HARP because the house is underwater. In order to do a "traditional" refincance I would have to bring money to the table to buy down the mortgage, I dont have the money to do that.In 2008 went into escrow on the house I'm living in. My wife and I thought we were all set to close on our house but at the 11th hour the underwriter pulled our loan because we didnt own our business for 2 years. Instead of walking away the seller agreed to owner financing. We had a second with him and he remained on the orginal note. Our names were put on title and we pay all the property taxes. The agreement was we would refincance into our name within a year. As you all know the housing market crashed right after and like so many others our house is now under water so we were unable to refinance. I'm wondering if anyone knows a way to use the HARP program to get our names on the loan and the sellers name off? BofA holds the note, were reluctant to shed light on our sitution with them fearing they would call the loan due. ANY SUGGESTIONS?? by nateotis from Auburn, California. Feb 8th 2013
Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions
It would be best to have a discussion offline to get more details on your situation. If you are on the loan, eventually, you can refinance the other person off assuming you have equity down the line and can meet the income and credit requirements as well as the debt to income ratio requirements. I'd be more than happy to work with you offline. Let me know how I can help!
Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions
the only way to get him off of the new loan os to do another refi at that time.
John Schweer (johnschweer)
#24 ranked lender in Kansas - 163 contributions
Joes right.....and do you have a fannie mae or freddie mac loan?.... the programs are slightly diffrent
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Under current HARP guidelines, you can add a borrower, and you can remove a borrower so long as one of the original borrowers are still on the loan.. So adding you without removing the previous owners will not be any benefit, and it will shed light on your "Owner Financing".. Which under the terms of a Fannie/Freddie loan would be a breach of contract (due on sale clause) if there is a change in ownership, so your loan would be denied and worse yet, they could call the loan due... FHA will allow you to refinance up to 97.75% Loan to Value.. So it might require less $$ to bring to the table to close depending on how far underwater you are.. If you don't do anything and stay put, there would be no reason for the seller to call the note due.. Since they would be taking back a property that is underwater.. If you walked away from the property, you probably could purchase another home, since this property with seller financing would not be listed on your credit report, but that would be unethical, and you could be sued for breach yourselves.. Tough situation.. Sorry.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
David Kosmecki (david_kosmecki)
#35 ranked lender in Minnesota - 259 contributions
Clever idea but unfornutely, no. It soulds like they need to do a short sale with the current lender so you can finance it.
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