Home Buying in 95670>Question Details

Ann, Home Buyer in 95670

My sister and I inherited a house with no mortgage. Both names are on the deed now. How do I buy her out of the home?

Asked by Ann, 95670 Thu Feb 23, 2012

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If I understand your situation correctly, you are your sister are the joint owners of a home owned outright. There are some legal questions that you may want to address with the estate attorney, but it really should be a pretty easy thing to do. If there was an appraisal done in conjunction with the estate you have a starting point; if not you can actually start the loan process and have the lender do the appraisal and that way you won’t have to work from estimates by agents or spend money on an appraisal twice.

The transaction is really a hybrid refinance/purchase. I would start by applying for a loan to purchase the 50% of the property that you don’t already own. A good lender can go over your financial situation and advise you as to what loan will work best for you and your situation. The lender will do an appraisal and you can then base your value and how you want to share the costs after you have that information.

There is a lot more to this type of transaction that I could ever write here, but I would be glad to go into more detail if you want. You can contact me through my profile.
Web Reference: http://www.SacRELender.com
0 votes Thank Flag Link Tue Mar 20, 2012
You need to agree on a price and get a new loan to pay her off. Contact a lender. You could get a local Realtor to do a CMA ( comparative market analysis) to give you a good idea of how much the house would sell for. I would also ask for a sellers net sheet which would show the costs involved in a typical sell.
0 votes Thank Flag Link Fri Mar 16, 2012
Dear Sister,
First contact your local real estate agency or get the name of a reputable agent. Interview several agents and the one that will give you free information and advice go with him/her. This agent should be able to provide comps for similar homes being sold in your are. Once you have an ide of what your home is worth. You may offer to buy your sister's share and transfer the title in your name. You will need a lawyer to process this and execute it.
0 votes Thank Flag Link Fri Mar 16, 2012
If you are living in the house you can get a FHA to pay your sister her share of the house. You can roll the closing costs into the mortgage if the DTI works out.
If it will be an investment property and you have tenants in, you can get an investment mortgage to pay off your sister.
0 votes Thank Flag Link Fri Feb 24, 2012
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