2006-12-27 11:37:23 · 3 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
If it's still under contract to purchase, it's not their house yet. So, there's nothing for them to refi.
Unless they're going to be assigned the loan the seller has, there's not even any reason for them to refi.
2006-12-27 11:42:04 · answer #1 · answered by Linkin 7 · 0⤊ 0⤋
That's awfully stupid to refinance a home right before it's sold. Why pay the extra incurred costs?
The only thing I see that would make this bad is if the house is onder contract but will be sold on a land contract whereby the seller holds title until the buyer pays it off in full.
Otherwise, in a normal transaction, the buyer will come in with a new mortgage and it will pay off the old mortgage including the new refi.
Not illegal, if it was illegal to be stupid the prisons would be overcrowded.
2006-12-27 11:48:50 · answer #2 · answered by El_Nimo 3 · 1⤊ 0⤋
I don't know, but I would wonder why someone would pay closing costs and a possible early pay off penalty on a re-fi if the house will be sold soon. I'm wondering what the benefits would be for the seller (who I assume you are speaking of).
2006-12-27 11:51:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋