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wmleeto
Posts: 2
Registered: ‎12-21-2012
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6 Month Waiting Period for Refinance

My father in law passed away in June 2012.  His house had both his name and my sister in laws name on it (so my sister in law iherited it).  The family wanted to try to not sale the house so I went to a lending agency and got preapproved for a loan to pay off the current mortgage (in my father in laws name)  Not knowing anything about this stuff we thought it was a good idea to quit claim the deed to me (which my loan officer said was fine) and now my loan is being denied because I am being told I have to be on the title for 6 months.  Seeing as the title was never cleared because of outstanding leins is this accurate?  They denied the loan after even going as far as me forking out $400 for an appraisal, is it possible to get that back seeing as no matter what the appraisal value the loan would have been denied anyway?  Any ideas what I can do here?   

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StartingOver10
Posts: 4,222
Registered: ‎03-06-2010
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Re: 6 Month Waiting Period for Refinance

[ Edited ]

wmleeto wrote:

My father in law passed away in June 2012.  His house had both his name and my sister in laws name on it (so my sister in law iherited it).  The family wanted to try to not sale the house so I went to a lending agency and got preapproved for a loan to pay off the current mortgage (in my father in laws name)  Not knowing anything about this stuff we thought it was a good idea to quit claim the deed to me (which my loan officer said was fine) and now my loan is being denied because I am being told I have to be on the title for 6 months.  Seeing as the title was never cleared because of outstanding leins is this accurate?  They denied the loan after even going as far as me forking out $400 for an appraisal, is it possible to get that back seeing as no matter what the appraisal value the loan would have been denied anyway?  Any ideas what I can do here?   


It is clear your LO had no idea what they were doing or they would have never told you that it was OK for you to have the deed quit claimed to you prior to the purchase of the house. In the first instance, prior to the quit claim, you would have been purchasing the house using the funds from the loan.  Financing a purchase is perfectly normal. In the second instance, after the quit claim deed and without paying off the existing loan, you are in essence refinancing the property.

 

So now you don't have clear title because there is an existing mortgage lien on the property and the mortgage belongs to another party.

 

As to the $400 appraisal fee, you lose it because an appraisal was ordered and completed right? The appraiser did their job and they get paid for it.

 

You would be better off going to an attorney now to see if you can untangle this situation. Don't do any more transferring between the parties until you get a proper consultation from a real estate attorney. Or you can wait for the six months and show you made the payments so that the mortgage is current and then refinance. Get the lenders criteria in writing now so you can straighten out any potential issues that you face over the next six months. Make sure you are working with an experienced LO, not the one that gave you the bad advice. Good luck. Six months flies by....before you know it you will be able to refi.

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wmleeto
Posts: 2
Registered: ‎12-21-2012
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Re: 6 Month Waiting Period for Refinance

Thank you.  I figured I was pretty much screwed.  i am hoping they will honor the apprasial since it was thier mistake (even the loan officer admitted it an appoligized for the mistake).   Even if they only honor it for 6 months I should be ok... Very close, but ok.

 

One of my  biggest fear is for the current mortgage holder to find out of the death and excersise their due upon death option and call the loan due in full, in which I have a loan that I can't pay and 6 months won't be enough time to straigten this out; ending up in forclosure.  Then I end up getting forclosure or something on my record to, just because I tried to help out my family.

 

 


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