We often have cash buyers who pay all cash for properties for a variety of reasons, including: (1) poor condition precluded mortgage financing; (2) need for a very fast close precluded mortgage financing; (3) offering “all cash” garnered a lower price from a nervous seller; or (4) the property was purchased via a deed of trust (foreclosure) sale on the “courthouse steps”.
Many of these cash buyers wish to refinance these properties after they buy. Most of our lenders require that the purchase “season” for six months before a buyer can refinance and pull cash out.
Citi Mortgage is the exception. They allow cash buyers to refinance and pull cash out within 90 days. But, the refinancing must close within 90 days. If not, the buyer must wait the full six months.