Of course this can be done. Anyone can lend money to anyone else for any purpose as long as the interest rates do not exceed statutory amounts. In this case, however, I strongly agree with my colleague that you must retain a real estate attorney to do this for you. The lender will want to pay off the existing mortgage, get a satisfaction of that mortgage and replace it with a mortgage of his own to secure repayment of the loan. Or as an alternative the lender may want to purchase the loan from the bank and record an assignment to avoid mortgage tax or do a Consolidation, Extension and modification agreement to take over the lien and avoid paying mortgage taxes. There are many different ways to get this accomplished but the lender should be sure that he has some collateral to get paid back. Speak with an attorney before deciding on a course of action.
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Generally speaking, yes. However, this is not something to be done by yourself if you want it even remotely done properly. A real estate attorney should be able to assist you fully for a modest fee.
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The bank doesn't care how it gets paid.
I am a former federal and State prosecutor and have been handling criminal defense and personal injury cases for over 18 years. The above answer, and any follow up comments or emails, is for informational purposes only and not meant as legal advice.
You need to consult with an experienced real estate attorney. This is not something you should try yourself. YOu want to be certain that all the documents are right before any money changes hands. A skilled real estate attorney should be able to handle this for you.
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