Refinacing a mortgage on secondary home.?

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It looks like to refinance a secondary home because of the housing market is so bad turns out to be very popular. However, there are regulations involved on different type of loans. Bottom line is high risk on this kind of loan. A loan officer told me, I can sell the secondary house to my son or relatives and still can get the loan approved. Question I have is 1.) Is it legal? 2.) My son is still in college, does not have income, how can he qualify a mortgage loan? The loan officer told me, they can do it, first to make my son the buyer of the house, then title the house back to my name. In between, I can get some cash out. Is this possible? Would like to get some opinions from those have more experiences in this refinance business.

We signed our papers on June 28th. The loan was funded today. How soon until my old loan is paid off and when will I receive a check.
We did not get a check when we signed. We were told we would get a check when they had the final payoff figure and kew how much would actually be due. It was a refi with the same company.

6 Comments
  1. Reply
    v b
    January 22, 2011 at 11:15 pm

    Don’t do it. Playing games with the title will get you into gift tax territory.

  2. Reply
    Sharon T
    January 22, 2011 at 11:41 pm

    This just reeks of the same kind of dishonesty that created our present crisis. Find someone else to work with and don’t do anything that is illegal or unethical.

  3. Reply
    Jay S
    January 23, 2011 at 12:11 am

    It sounds like your loan officer is trying to pull a gift of equity purchase.
    The big problem here is that there is no legal way your son can qualify for a mortgage without a job/income. Your best bet is to find another loan officer. Let me know if I can help you.

  4. Reply
    mazziatplay
    January 23, 2011 at 12:46 am

    If the loan funded today you should be able to pick up your check if there was cash due you at closing.

    If youa re talking about a refund of your escrow account on the loan being paid in full, you should see in in few weeks.

  5. Reply
    Bill G
    January 23, 2011 at 1:21 am

    roughly within about 2 weeks or less, usually…..some banks are faster than others, but from the start of escrow to when it closes is within 25 to 35 days.

  6. Reply
    CommonCents
    January 23, 2011 at 1:44 am

    Old Loan should be paid off by Monday or Tues. You will be charged interest on both loans until the old one is paid off.

    Check could be mailed from escrow today or Monday, but don’t be shy, call and ask them. If they are local to you, perhaps you could pick it up!

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