I am sure many people are in a situation like this: I've owned my house for a while and now there's a decent amount of equity in it which I would like to tap into. One option is to get a Loan or HELOC. Another is to refinance. But both involve credit scores, a mountain of paperwork, appraisals, inspectors, and whole load of other BS, and in the end I didn't even qualify. Plus the equity isn't free - the bank is really loaning me my own money and charging me interest. So I wondered why can't I just sell the house to myself? I'd be happy to buy it for the higher price - assuming it appraises. The mortgage company shouldn't care since they know i'm already a good borrower. I asked my realtor this question and after looking into it, he just said it wasn't allowed but didn't know why. So now I'm having to go through all the BS of selling the house and search for another place to live even though I really don't want to move out. Any ideas out there?
Update: Sorry I fired that posting off in frustration. Always a mistake when lots of thoughts are flying around in your head! I should probably scrub it and repost but that's fine I'll leave it as it is and instead add the following clarifications: The specific situation I was in was w.r.t an investment property in Texas. So a couple of big differences: Back when i was trying to do this, no-one would do me a cash-out refi on an investment property in Texas. Things may have eased up a bit since then, but even at the best of times, you're limited to 75% LTV if I'm not mistaken. Contrast that with 90% LTV on a new purchase and - depending on how much equity - it could make or break the whole thing. I don't recall the exact figures but I remember going through the amounts and deciding it was not so worthwhile.