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?

[Richard Lincoln]

Originally posted by @Joe S.:

Originally posted by @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?

 How are you getting the loan information on the first? I foreclosed on a second lien a number years back and the first lienholder which was a bank refused to give me the loan information. They would not tell me how much was delinquent, the payment amount, or anything. 

 Depends on the situation. Sometimes they have to put it in foreclosure notices. Other times they are required to produce the information to certain parties per state code. There are also bankruptcy records, credit reports, probate records, mortgage assignments, etc. If they file for summary judgment in a judicial foreclosure state a lot of info will be attached to the motion. Sometimes the people I bought it from already had the info. Sometimes to reinstate a 1st I just keep inching up the tender alount until they accept the payment rather than sending it back.