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Buying Half the House |
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My fiance brought a house with her brother about 3 years ago. She would like me to buy him out when we get married. Where do I start with this process and what would be needed? |
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A good first step is to find out if any current mortgage could remain on the property when there's a change in ownership. Contact the mortgage company and discuss the matter.
Next, determine the present market value of the house. Sometimes each party (you and the brother) hires an appraiser for a simple inexpensive estimate of market value, and they set the price by averaging the two appraisals.
Then you need cash to buy out the brother. If you can assume his liability on the present mortgage, you might not need all that much cash for the difference. If you can't take over his share of the current loan, you and your fiancee will have to apply for a new mortgage loan, using the proceeds to pay off the old one.
Before you continue, you need some assurance that you're not buying into unexpected legal problems, so you should have a title search just as any buyer would.
Then you'll follow the usual procedures for transfer of title, by way of a new deed, under the guidance of a lawyer, title company, escrow company or however it's usually done in your area. |
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Edith
Originally published on October 16, 2007 |
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