Cheapest way to "refinance" 1st in subject-to transactions?

[Richard Lincoln]

I buy lots of second mortgages and occasionally foreclose on the properties. I end up getting title to the properties subject-to the 1st mortgages. Well, then I get in to a pickle because sometimes I'd like to keep the properties but the 1st can call the loan even if I reinstate it and, often, the situation is troublesome with escrowed insurance premiums because I have to pay insurance premiums for which I'm not receiving any real benefit. The 1st mortgage is typically non-assumable.

So, I look to "refinancing" them, but the answer is usually that they won't refinance the mortgage if I'm not the borrower. (the former homeowner is the borrower) Hard money is possible, but it's so damn expensive that I may as well just sell the house and 1031 the sales proceeds in to a new property. Even refinancing a loan has thousands in closing costs. Selling the house has buyer agent fee.

Anyone have this problem before?

[Joe S.]

It was a private money lender that I have personally developed. With that being said if you can get loans I don’t know why you couldn’t pay it off with a new loan. If you’re self-employed like a lot of real estate investors and don’t have the standard tax return then maybe you could find a stated income lender.