So if you have an Installment Agreement for Warranty Deed, how do you obtain a loan in order to pay it off; since you're not on title (until you pay balance)?

First its not a good idea to piggyback your question on another thread. This can lead to confusion. So I've moved your question to its own thread. In fact this was mentioned in the thread you posted to!

Since you obtain title when you pay the contract a lender will be able give you a mortgage. When you buy a house at any time, you don't own the house until the closing. Same thing goes.

Well, first thanks for moving this to a new thread, which I'll post new questions in future. I'd like to add my details to make sure your answer applies. I went into agreement with seller 6 years ago for purchasing home. We had a real estate attorney write an "Installment Agreement for Warranty Deed" (attorney's choice). The seller had paid for a title policy and sent me a copy, which listed the parties names. So I thought my wife and I were on title. But the installment agreement dictates we're not on title till it's paid off. So really the title policy the seller purchased turns out to be of no value? And when refinancing the mortgage companies want to know if we're on title. So that's why I was asking how do you get a mortgage loan to pay off the "Installment Agreement for Warranty Deed". I'm trying to get a real estate attorney, and was trying to get as much information as possible to help understand my position better. I should have been more informed earlier, but I had a false sense of security when I had that title policy from the seller, plus a real estate attorney write it up and record the agreement. Thanks.

A Title policy simple insures that title is clean BEFORE the property is transferred to you. So the title policy did have value. A title search is done before property changes hands so it will never include the buyer.

So you are NOT doing a refinance. I suspect you are asking mortgage lenders about a "refinance" and that's why they are asking. But this is neither bad nor a problem. You just need to explain to lenders that you are asking for a NEW mortgage to pay off your CONTRACT so you can get title to the property.

The contract should specify how to calculate a payoff balance. That's what you need to know so you can tell the lender how much you need. At the closing of the loan, the bank gives a check to the seller for what you owe and he signs over title which you then record. This is usually what your attorney arranges.

What you have is commonly called a contract for deed. Nothing more , nothing less. You do not own the home till you pay the contract off. ** and at that point hope they don't still owe money on it and can transfer it to you. There are large risks on this type of arrangement, including the owner not paying any loan and the property being foreclosed.

So be sure your contract has been filed at the courthouse as proof.

Next how do you get a loan, you do not refi , you just get a loan like you are buying a home, a regular loan, then you have a closing, the bank gives them a check for the amount still owed, and they provide you a need deed.

This helps in my understanding the contract that I had in relation to the title. And there's another part to this. The seller is deceased and his heir assumed ownership, so payments were sent to her. The "Installment Agreement for Warranty Deed" had a balloon payment after 5, years. This came up last year, so the seller's heir and I agreed to and signed a "Mortgage Extension Agreement" with same interest rate, for 5 more years. It references the original contract as a "mortgage" using the county recorded number (of the original contract). This new agreement was recorded with the county. Is this materially different other than extending the contract?

Nope. Installment agreements frequently have a balloon payment. And it is not uncommon to extend the agreement if the buyer can't get financing.

Typically installment contracts are used when an buyer can't get financing at the time. So the seller takes a chance and does an installment contract. Its not a high risk, since, if the buyer defaults, the seller recovers the property and the buyer forfeits all they have paid.

So based on all responses,here's my understanding. I have a contract to purchase the house. Both parties have agreed to extend the terms of the original contract. In order for me to get on title, I need to get a mortgage to do this. Sounds like I need to ask for a purchase, not a refinance, and explain details. I've been referring to what I have as a private mortgage, which isn't really accurate I guess. I have a contract to buy the house. If this is right, then there's no reason for me to seek an attorney to get on title. I can only do this by paying off the contract. BTW, I really appreciate all the informed responses, which have been both clear and helpful!

You have it almost right. You don't "need a mortgage" to get on the title. You just need to satisfy the terms of the contract. How you do that is up to you. When you hand over the balance you owe on the contract, the seller needs to convey a warranty deed to you. Until you satisfy the terms of the contract, the seller retains title.

You don't need an attorney now just to add you to the title. There is nothing you can do about getting on the title until you pay off the contract.

A mortgage is a loan where the loan is secured by real property. So you don't have a private mortgage, but a sales contract.

I've heard so much about sellers offering buyers a private mortgage, that I thought I had this type of arrangement. This clears things up for me. I just need to communicate this correctly if I decide to obtain a loan for paying off the contract that I have. I appreciate all the insight!

... The seller had paid for a title policy and sent me a copy, which listed the parties names. ... So really the title policy the seller purchased turns out to be of no value? ...

I believe you may be able to get a supplemental policy which insures title for the period since that policy was issued. This should be at a much lower rate than a brand new policy.