Cash Out Refinance
A mortgage company that I am working with to do a cash out 80% refinance of my perosnal residence of ten years, said that if I use that money to put down on a new house in the next 30 days after close could be considered fraud. DId she misunderstand my question do you think or is this true?
thanks
The only thing I can imagine she is talking about if the new loan is obtained stating that it will be owner occupied if that is not the case. I am at a loss what else she could be asserting.
I think that if you bought a new house to move into with the money, after getting an OO mortgage on the last one, this could be true. But if you plan on continuing to live in the residence you refied, I would say it is of no concern to the bank what you use your money for. In fact, I would think they would be happy if you were to invest it in an income producing asset rather than just spending it on consumer crap.
Chris
I am putting my current residence on the market for rental. Once I get a lease, that debt will come off my ratio, qualifying me for higher financing. At the same time I am doing a cash out refinance on this house. Once the house is leased, I will persue another residence. Can I use the cash out money for a down payment on another house for primary residence if I have a signed lease on my current residence. I hope this clarifys the situation I am in.
Is the refi an OO loan or an investor loan?
Chris
I can avoid all of this because I have other funds I can access other than my cash out. My cash out is for future investments. In that case, I should have no problem.
As far as the lease in Texas. All that is required is a signed lease. I have never seen a case of some institutuion checking the property to see if tennants moved in.
Thanks. God knows I have endless credit card limit. That is a very good point.
Wow.
They must have had to give you specific rights in the auction, right?
Did the owner continue to have the right to use and access of the property during the 180 day redemption period? I would think that they had to take very specific action during that time.
That must be the starting point.
I do know that there are many auctions and foreclosure sales happening around me. The new owners must take action thru the courts to formally evict. Is that not what you will have to do?
You also might get help from landlord / tenant court in the county of property. They would be called hold over tenants.
Landlord Tenant Laws of State/Co/Jurisdiction probably prevail. Might be different if this is vacation property not resided in.
This post is probably too late now... since you probably (hopefully) have the deed already.
I would talk to a real estate attorney well versed in dealing with IRS seizures since this is NOT A FORECLOSURE SALE. I believe SC is like NC and the "resort property" rules are different than the "regular" property rights rules. Also since the IRS is acting as the trustee, the RE attorney can advise you on what rights, if any, the prior owners have.
Please post what happened.
Find and read your state statutes regarding possession following foreclosure and tax sales.