refinancing a wrap-around note

2 Replies

I'm attempting to refinance a mortgage that I took over. I flipped the house and am holding the note. The banker is telling me that since I don't own the house he can't loan against it unless the current owner is in on this. I understand the banker's point of view. Are there any ways around this. I stand to save a lot , not only on interest, but also on fees, insurance, etc. that the mortgagor was charging the person from whom I bought the property.
Thanks for any help.
Mike Mitchell
Lubbock, TX

I need to back up what Scott said. I don't know a single person that would lend on something you do not own.

Typically before I sell on a wrap around, I make sure I have solid financing in place. However, you owe on the initial mortgage in which you are the payee, so you can not sell that as you do not own that.

Are you just looking to increase your monthly cashflow? Hate to say it, not much you can do from what little information we have.