Quote from @Roger Flot: I was reviewing some renovated listings in my area and one indicated that even though the house was originally built in 1920, because of all the renovations bringing the house to current code, that you could get 2024 rates on insurance. 

Paid 77% of the original list price on this new construction home.

Originally posted by @Roy N.

Most likely the new lender is going throught the foreclosure process and typically will end up taking the property back.The original posters chances of getting this property back now is slim to none as it will be sold at market value.  

The refinance step is where you pull out this equity, typically in the form of a cash-out refinance.Here’s how it works:You refinance the property at its new appraised value (after rehab and renting).You take out a new loan based on that increased value, ideally for the full amount or more than what you originally paid for the property.The goal is to pull out enough money to cover the cost of the original purchase and rehab (or even more, depending on the property’s appreciation).This allows you to recover your initial investment, which can then be used to buy your next property.5.

However, the depreciation claimed while the property was a rental must be accounted for upon the future sale of the personal residence, which could increase your capital gains tax liability.The adjusted basis of the property (original cost minus depreciation) will be used to calculate gains or losses at the time of sale.

Alternatively, I could explore loan recasting, where the lender recalculates my monthly payment based on the reduced principal, keeping the original loan term intact.

Then mortgages get collateralized and sold to Fannie or Freddie so they can keep lending and make money from the original fees.

I am originally from Tyler, Tx. so am familiar with the area and frequent there often.

My name is Cesar and I am originally from Puerto Rico but have been living in Virginia for over 20 years.