My friend and his partner are breaking up. The house is in both their names, but my friend wants to buy his partner out. Does anyone know how this is done? Its in New York. Does he give her the money she originally invested and then have the title/deed changed into his name? Any information would be extremely helpful. Thanks.
2006-07-05 11:07:52 · 6 answers · asked by goofy77 3 in Business & Finance ➔ Renting & Real Estate
How it is usually done is that the person who wants to keep the property does a cashout refinance. This does 2 things: first, they can use the money to buy out the other person, 2nd, the refinance gets the person who doesn't want the house off the mortgage and the deed.
You can do this without refinancing if the person who is staying has the money in hand. Then you just do a quick claim deed removing the other person. The only problem is if the person leaving is on the mortgage, then the only way to remove them is via a refinance.
I do these types of mortgages in New York, so let me know if I can help your friend.
Good luck
Ben Witmer
Price Financial Services
www.pricefinancialservices.com
800.401.9091. phone
2006-07-05 11:15:38 · answer #1 · answered by info_pricefinancial 1 · 5⤊ 1⤋
no whats gonna happen is they have to refinance the house. then they will get an attorney to close the deal. they will get the current market value of the house. then split it in two 2. say the guy wants to buyout the gurl. the guy will need to refinance the house to buyout the gurls property. say house worth is 1000 (market value) the guy and gurl each gets 500. it dont matter how much the gurl paid before. so say the remaining debt of that house is 700. the guy will refinance the house for 700 + 500 (which is the share of the gurl) then the gurl gets her 500 from the lender and the guy will refinance 1200 but again he will be the only owner of the house. make sense? i think thats how it works. correct me if im wrong.
2006-07-05 11:15:20 · answer #2 · answered by ||ripped|| 2 · 0⤊ 0⤋
No, it is not based on the original investment. It is based on that and the appreciation. Basically the two of them are selling the house to one of them. Get the house changed into one name. Basically how much has to be paid to the other person is half the equity or whatever they negotiate. Sometimes it is all the equity.
2006-07-05 11:11:44 · answer #3 · answered by BonesofaTeacher 7 · 0⤊ 0⤋
Normally you would get an appraisal or otherwise agree upon the current value of the house. The buy out is based on each persons share of the equity in the house.
2006-07-05 11:16:33 · answer #4 · answered by davidmi711 7 · 0⤊ 0⤋
I have done this before I am a loan officer. If they are both on title, whoever is keeping the house simply needs to refinance it in just their name. The other party may need to go the closing (may not) however it is done pretty easily.... as long as the one keeping it can qulaify for the refinance on their own. Email me if you have any other questions...
2006-07-05 11:12:49 · answer #5 · answered by Mike Hunt 5 · 0⤊ 0⤋
The best way legally would be to get a full inspection to determine market value and go half that way. In buying her out he would have to get her to sign a quit claim deed so that the home could be only in his name after he pays up.
2006-07-05 11:12:09 · answer #6 · answered by Anonymous · 0⤊ 0⤋