from financial obligation) so that i can purchase the house from him with a mortgage that will provide more money than a home equity loan.?
2007-12-07 09:53:55 · 14 answers · asked by Mr Yankee 1 in Business & Finance ➔ Renting & Real Estate
yes sounds like a plan
2007-12-07 09:56:48 · answer #1 · answered by mr fugi 6 · 0⤊ 2⤋
no need, you can do this in two ways:
1. refi the house in your name only and draw up a note secured by the home for the difference of the sales price while he comes off title. That way the finances stay in your name only and your brother can foreclose on you if you don't pay him or he can sell his note to a third party and have cash on hand.
2. The same as one, but do not refi. The only issue here is that the first loan will have your brother's name and his credit can be affected if you stop making payments.
Keep in mind, being on title and being on the loan are two separate things.
Regards
2007-12-07 15:35:11 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No. In your scenario you are going to pay closing costs twice, as well as transfer taxes twice- once to take you off, and again when you "buy" it from him. Why not refinance the first mortgage in an amount sufficient to pay off the current loan and provide the cash that you need?
It's also unclear why you believe taking out another mortgage in your name only will give you more money than a home equity loan.
2007-12-07 09:58:12 · answer #3 · answered by sarah jane 7 · 0⤊ 0⤋
Well, the economics of it would be pretty strait forward, you figure out what the bank will loan you for the purchase and subtract out all the various fees you would be charged for the two mortgages you would be working through.
However, I would be more concerned if this is legal as this seems to be a little on the shady side to me.
2007-12-07 09:58:45 · answer #4 · answered by JA in SC 3 · 0⤊ 0⤋
It relies upon on the state you reside in. In NC the place I stay, an more suitable half has marital interest in any sources owned, and nonetheless has to sign the deed of have faith, or the actually own loan at remaining. the only thank you to get rid of an more suitable half from the indoors maximum loan is for that companion to do a quitclaim deed to the different, relinquishing all their interest interior the domicile. i think of you are able to desire to envision with a actual sources criminal expert on your section and be clean on the regulations of your state. it could be too late as you have already closed and the indoors maximum loan is recorded, yet examine with an criminal expert besides. playstation -under no circumstances sign something, especially a criminal checklist, with out understanding what you're signing.
2016-11-14 19:40:10 · answer #5 · answered by ? 4 · 0⤊ 0⤋
It's not that simple, to refinance a house and dump one of the purchasers. Pay a consulting fee to a real estate attorney, take your mortgage papers with you. Credit has tightened up considerably, so be sure each of you can qualify for what you want to do.
2007-12-07 09:59:17 · answer #6 · answered by beez 7 · 0⤊ 0⤋
You could do a quit-claim deed that would remove you from the title first before the refi. I presume the existing note is in both your names.
If you buy from him, chances are in today's mortgage market you are going to have to put some % down (5-20), which, adding closing costs, could defeat the purpose of what you are trying to accomplish.
2007-12-07 10:06:44 · answer #7 · answered by TX Realtor 2 · 0⤊ 0⤋
It would make great economic sense. For Him.
If you did this and he was the only one on the note, he could then "rent" the house to you. This would allow him to claim depreciation which lowers his tax bill. In addition, all of the maintenance on the home, lawn service etc can be deducted as expenses.
2007-12-07 11:22:27 · answer #8 · answered by Bobcat 3 · 0⤊ 0⤋
A very wise man named Dave Ramsey, still alive, talks about this all the time on his talk radio show. His show is about helping you with getting rid of debt, and things like your situation. But from what I have learned from him is that it is not the smartest move to make that kind of choice. If you would like more info go to
www.talkradio.com/daveramsey
or
www.daveramsey.com
2007-12-07 09:59:45 · answer #9 · answered by TheBestIsYetToCome 3 · 0⤊ 0⤋
By removing your name, you're no longer part-owner to the property, giving him the right to evict you if you and he gets into an irreconcilable dispute. If he wants your name off the deed, he should offer to buy off your portion of the ownership. If he's trying to talk you into removing your name, I would be very suspicious of alterior motives.
2007-12-07 10:03:18 · answer #10 · answered by Anonymous · 0⤊ 0⤋
Looks like you will soon be out of the ownership period.
2007-12-07 10:12:03 · answer #11 · answered by Anonymous · 0⤊ 0⤋