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Question
My parents left me a house paid for with no mortgage. 100% equity.
I moved in in Jan. 09. Originally the home was in a family trust. I executed an Owelty Deed to put the home in my name in June 09. I am being told that I have to be on title for 6 months before attempting a cash out refinance. Is that true? Property is located in north Texas.
Hi J.--
Laws relating to REAL ESTATE vary from state to state, so if your "source" of the info on the 6 month time period is a Texas-based Real Estate Pro of one sort or another, (ie. Realtor, Mortgage Lender, Title Insurance Officer, Licensed Closing Agent,etc)it "may" be true.So, IF it's a matter of law, you need to check this out with an Attorney practicing in North Texas to get a "take-it-to-the-bank" kind of answer.The State LAW may NOT be the problem, though!
The problem MAY be,however, that regardless of state laws, Mortgage Lenders--now more "gun shy" than ever because of the risky loans some of them made and the growing rate of foreclosures--are making stricter rules of their own. And "Fannie Mae" & "Freddie Mac,",purchasers of nearly ALL Mortgage Loans made by the Lenders have set "seasoning" rules for Cashout Refi's for Lenders to follow, too. Seasoning" refers to the length of time a Borrower has owned a property.
The term "Owelty Deed" is one used mostly in Divorce situations, but I'm assuming your use of it is as either an ADMINISTOR'S DEED (AD) or an EXECUTOR'S DEED (ED) considering what you've told me about your acquisition of the property.If your "Owelty Deed" is an AD or ED (NOT just a Quit Claim Deed) you MAY be able to find a Lender who will do a Cashout Refi for you.I've just spoken to my "Texas-based" Mortgage Lender "contact person," who will take your call,get more details from you, answer any questions you may have--maybe even get a Loan started for you NOW.
Call Rick Wade at RMC Vanguard: 1 (888)852-7645 x6087
Tell him "Jim sent you," he'll be helpful! GOOD LUCK.
--JIM
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This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here
Answers by Expert:
Jim Root
Expertise
Real Estate Financing of all types/styles--Government & Quasi-Governmental loan such as FHA & VA; Conventional "Fannie Mae" & "Freddie Mac"-backed Mortgages & all sorts of "Creative Financing" techniques! Credit Underwriting & Property Value & Condition Requirements of standard Home Loan Programs. Purchase Money Mortgages or Refinancing! Gale, shown with me here, has been a licensed Real Estate Agent & Office Administrator & my Research Assistant over the years!
Experience
Over 30 years as a "Real Estate Professional," including Real Estate Marketing & Sales, Mortgage Banking & Residential Appraisal businesses.Past certifications as a Mortgage Co. Manager, Underwriter, Staff Review Appraiser, Compliance Inspector & Loan Officer with a nationally known Mortgage Company. 12 of the 30 plus years of experience was with the Dept. of Housing & Urban Development (HUD) as a Homeownership Program Officer, trained & proficient in all aspects of the Real Estate Sales,Appraisal, Inspection & Financing areas.
Organizations
Former Member of Nat'l Ass'n of Realtors (NAR)& Mortgage Bankers Ass'n of America.(MBAA) Currently with National Ass'n of Review Appraisers & Mortgage Underwriters.(NARA/MU)
Publications
Published in local, regional & national Real Estate industry magazines & newsletter on various Real Estate-related topics.Co-authored numerous Goevernment Manuals, Handbooks & Panphlets on Home Mortgage Programs while with HUD/FHA.
Education/Credentials
Associate Degree with emphasis in Real Estate Studies plus:
Over 20 "Special Courses" relating to Real Estate, including Financing, while in Private Sector & with HUD's FHA Homeownership Division.
Bachelors Degree in Mass Communications &
Masters Degree in Education/Teaching.
Awards and Honors
Professional Designations include: Certified Resiential Originator (CRO) with MBAA,Registered Mortgage Underwriter (RMU)& Certified Review Appraiser(CRA) with NARA/MU. Past awards include Outstanding Performance Awards for 10 of the 12 years with HUD/FHA & numerous
Real Estate Sales,Appraisal Reporting & Mortgage Loan Origination
awards while in "private practice"
Past/Present Clients
Currently Director of a Company that provides Professional Development Seminars & Workshops to Real Estate Agents, Appraisers & Mortgage Lenders & both free(as needed) & fee-paid (sliding scale)consulting & inspection services to the general public.This "Expert" is a "Disinterested Third Party" who will not try to sell you Real Estate, nor Appraise or Inspect your Home, nor attempt to put you into a Mortgage Loan--all questions will be answered with your best interests in mind!
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