I have a house that is been finance by the seller, he use his IRA money to buy the house and then sell it to me just like a regular purchase but instead of paying the bank, I'm paying his IRA company back. I need to do a refinance with him to get cash out and he is ok with it, so we tought that we can increase the loan amount and do a new contract for the new terms. A lawyer in the area told him that we can NOT do that, that he can only refinance my house to lower or increase the rate or change the term. Is this accurate? Any Ideas?

When you bought the house, you should have signed a contract for deed. How and where the seller got and paid for the home doesn't matter. The seller is your bank. Refinancing is easy. You apply, and based on the appraisal will determine how much money you can get for a loan. Why in the world would you need to do any sort of new loan with him or new terms. You would pay him off with the refinance, and he would no longer be in the picture.

I feel like a part of picture is missing. But assuming that you are on the deed of property and you can proof the mortgage was paid on time , you CAN take cash out

Seek advice from a mortgage person in your area who is familiar with how your state work concerning this type of situation.

It's best you pick up the phone and call a local mortgage broker.. your corner bank will not be trained to answer this type of question, but a broker will.. and your question doesn't make sense, so discussing it with someone in detail would be best.. once all the facts are know, it's easier to answer.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

We would need to know more information to answer your question. How much do you owe, how much is it worth? You should speak with a a mortgage adviser to see what all of your options are. This is a free service offered by any reputable Pro. Give us a call if you'd like to find out more. 800-991-5309