Hello,\n\nIf you refinance an original mortgage with a new lender and there was a gift involved of $21,000 in the form of equity, does the new mortgage with a new company automatically void out the first one and the equity gift? \n\nThank you.

Yes. When you refinance all mortgages get paid off as the new lender always wants to be the only one you owe to (in 1st position). Unless you get a 2nd mortgage. As for the gift of equity, that was not recorded as a mortgage, it is the same as a down payment so it is your equity to keep or use as the law allows.

We will be completed in less than a year. Also a veteran want to finance local. We spoke with a company in Illinois that say they will work with us, but prefer locally.

Yes. I have at least 5 lenders who will work with that. Every situation is so different that a Manual Underwriting would be best when you are ready. With good letters of explanation where it may have been a \"one time occurrence...\" maybe you will get a break and get maximum financing. Conventional financing (not VA) may classify you as C credit if just discharged, B- at 1 yr., B at 2, A- at over 2 and A with over 700 fico at 3 or more years since discharged. That can mean 30% down for C grade credit and 10% down for A credit. BUT, if you apply for a VA/FHA loan instead, with a good letter of explanation, you may get regular financing of 3.5% or zero down with market rates that are now in the 4% range, so try to explain your way out of that first. Example: one of my clients had a foreclosure on a property in his name but the divorce had given the property to his ex-wife. Plus there were Federal student loans in default that were his ex-wife\'s son but he was willing to pay for them anyway. I got him a 5% fixed, 30-year loan at 70% loan-to-value on a refinance cash-out rental property. That is very good for all those issues but he had reserves and a good fico score. Feel free to write me at OneTXhm@gmail.com. Thank you and best of luck.

We submitted contract 7 days ago and supposed to close on the 17th but we didnt get to see the actual contract from our realtor until today. On seller temp residential lease form, seller want to stay for 5 days after closing day with $0 per days and $0 deposit. What else can we do to fix this shenanigan ??\n\nThanks

Well, everything is negotiable in a contract but only if you do so on time, not after expiration dates! So you can counter-offer any terms if done in a timely manner. Please plan for the worse and protect yourself as best as possible. Set up an appointment with your Realtor and his/her Broker to discuss your concerns, as every entry in your contract and addenda or amendments, has a lot of power to help you and harm you. If the tenant stays after closing, and burns the house down or destroys it, will your insurance pay for that, or will you or the tenant pay for that? Read your contracts very well and consult an Attorney if necessary. Best of luck.