Refinance and transfer ownership

[Davit Gharibyan]

Hi, my parents purchased a house for flip but it did not go according to the plan. The house has been on the market for 6 months now and has not sold. They do not want to go through renting the property. I am wondering if it is possible to transfer the property and the loan to me. I will rent it out for 1-2 years, then possibly will sell it. Is the process like buying a house basically?

Thank you.

[Chris Mason]

Hi @Davit Gharibyan and @Anna Dube,

Fannie Mae removed the continuity of obligation requirement within the last year, for rate/term refinances. Take a look here at this "DELETED TOPIC" over at fanniemae.com.

What that means in plain English:

If the seller's goal is just to get out of the loan and out of the property, without any net proceeds, and there is sufficient equity to serve in lieu of any down payment, you can refinance the mortgage into your name, and they quit claim at the closing table, leaving you alone on both the mortgage and on title. As soon as the seller starts wanting to make any money, this magic all goes away and it's a normal deal.

Your job at this point is to pick up the phone and start calling lenders in Oregon and Minnesota, respectively, and start asking "hey random mortgage person, can you speak intelligently on continuity of obligation?" until you find one that can, and that's your lender. I, alas, am only licensed in California, so I can't help you directly. You might get 20 "wtf is a continuity of obligation i don't speak french what are you a lawyer" responses before you get a hit.