Legal Question in Real Estate Law in New Jersey

can I take out a rehab loan if I own a property "subject to" I have the deed but the mortgage is in seller's name


Asked on 12/31/10, 1:47 pm

2 Answers from Attorneys

Barry Gartenberg Barry F. Gartenberg LLC

Thank you for your LawGuru question. I would need more information before I can answer the question. Please feel free to contact me ASAP so that we may explore your options and protect your legal rights. 973-921-0600.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

With best wishes,

Barry F. Gartenberg, Esq.

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Answered on 1/05/11, 2:14 pm
Miriam Jacobson Law Offices of Miriam N. Jacobson

From your question, it sounds as if you could be in serious danger of losing your property. Was your deed recorded? without that, no one knows that you are the owner.

If the seller doesn't keep up with mortgage payments, the lender will foreclose on the property. Also, if the mortgage was from the seller, the fact that the property has been transferred is probably a violation of the terms of the mortgage, and could trigger rights of the lender under "due-on-sale" provisions. That means the lender could require the entire amount to be repaid immediately.

Assuming that you are the legal owner, and assuming that the first mortgage is still a lien on the property, it is doubtful that a lender would provide you with a mortgage, rehab or otherwise. Most lenders want to have a first mortgage position, so that theirs is the only or primary interest in the property.

This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.

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Answered on 1/06/11, 1:24 pm


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