@Nicholas Wedra sounds like they did a cash out refinance and pulled out equity
@Nicholas Wedra First, refinancing or a refi means replacing financing. A cash buyer may finance a purchase with their own money and it is still a refi when they get a mortgage after the fact.
As for getting money back, this can happen when you have equity. For instance, a cash buyer has 100% equity. When they refi, they pocket the entire loan (minus closing costs), replenishing their cash. Or maybe someone had bank financing when they bought, but the property they bought at $100K is now worth $150K because the area is appreciating, or they have forced appreciation by rehabbing. Now they have $50K of equity on that $150K house. If they refi for, say, $120K, $100K goes to paying off the original financing, maybe $2k to closing costs, and they pocket $18K (and still have $30K of equity).
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