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Mortgage Advice!

Hello,My mother in law has a life estate clause on our deed. I do not have a mortgage on my house. I would like to re-finance my home and take some money out for college bills. The mortgage lender I spoke with says that since the life estate is on the deed, the mortgage can't be sold on the secondary market. My mother in law lives with us and is willing to sign on the loan acknowledging that she knows we are borrowing money against the house. Does anyone know how I can refinance without having my mother in law give up her life estate rights?Thanks!
  • March 24 2012 - Manhattan
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Answers (4)

Hello. Interesting case and I would be more then happy to give you some advice if you could email [email removed by Zillow modetator].  I would be more then happy to discuss.
  • May 17 2012
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It depend if it is a revocable or a irrevocable Trust or life estate. I am working on one right now

You can contact me for more info

Melissa Schneider
  • May 14 2012
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Yes, the life estate deed will be an issue.  You could always record a new deed and then refinance.  Your loan officer should be able to get you in touch with a title company to prepare and record the new deed.
  • March 24 2012
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This is a very interesting problem.  You will want to find a lender licensed in NY that will escalate this issue to their underwriting manager and attorney to see if anything can be done. You might look up Fred Goncher to see if he can help.  If nothing can be done with a conforming mortgage you will want to check with a local bank or credit union that would "portfolio" the loan (hold it on their books) to see if they can help you.
  • March 24 2012
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