Profile picture for anxious2finish

How do we need to refinance a loan that is in the prior owner's name?

My agent and prior owner's agent managed a deal that allowed us to move into a home by coming up with the agreed selling price and what was owed on the home. The ownere deeded the house to us, we have been making the payments and now we cna't get a loan for the amount owed due to dropping home prices and other issues.  Both our agnets told us that we could simply assume the loan, but that is not the case and getting a new loan under these circumstances has been next to impossible.  How can we do this?
  • June 09 2011 - Altadena
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Answers (6)

If you're not upside down, try an FHA.  If you are upside down, check to see if it's a FannieMae loan.  You may be able to to the Refi Plus loan on it, but I'd have to look up the guidelines with an underwrtier for your exact situation.  There may be some deed and title regulations in there.  Agreed, you have a mess...is there an urgency that is making you do the refi?  Is the lender calling it due?
  • June 10 2011
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How much is the loan amount and how much is the market value?

If you have been on title for 12 months and can verify that you have made the last 12 monthly payment on time, you can meet the continuity of obligation requirements and potentially be available for maximum financing.

So if the property is not upside down, you might have options.   I'm not sure what the "other issues" are that you refer to.
  • June 10 2011
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Profile picture for shapiroamg
  • June 10 2011
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Profile picture for Mills Realty
You have a mess on your hands and agents that seem to have over stepped their expertise.  Your next step is to hire a real estate attorney to get you out of this mess.
  • June 10 2011
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Profile picture for wetdawgs
Oh dear, what hole you've dug for yourselves.   I'm sorry that agents were pretending to be attorneys or loan officers.

What legal agreements were signed in this interaction? 

In a true loan assumption, your name ends up on the loan and not that of the previous owner.    What would I do?  Meet with an attorney as fast as possible.   Bring all paperwork. 


  • June 09 2011
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Do you know the person who deeded the home to you?  Why did you agree to take over their mortgage payments?  

Other than the dropping home prices what are the "other issues" that are preventing you from refinancing?  That neither of your name's are on the current mortgage?  Was the mortgage payment history always made on time, or did you "catch it up" when you bought the home by paying a bunch of back owed payments?

Where is your real estate agent in all of this?  The who gave you all of this great advice?
  • June 09 2011
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