We own a house that my siblings also have a share in. The house is paid off. What is the best way to pay siblings off? Home equity loan or mortgage?

Asked by Tim, 90048 Fri Sep 24, 2010

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3
gabriel palo…, Agent, Pompano Beach, FL
Mon Sep 27, 2010
It is a process that may prove to be touchy if not followed through properly. I am sure you have heard of the expression never do business with a relative. That is not true if the business in hand is carried out properly as business at arm length. To avoid a family dispute I would advise you to do the following.
1/ Get a professional bank appraisal to provide the true value of the property
2/ Make your offer to buy out your siblings in writing.
3/ With or without their written approval the following steps is required.
4/ Hire an attorney to finalize the outcome of the offer. If the offer was not accepted be prepared to ask if they are willing to have your share purchased. Now it is your turn to to respond with your terms and have the ownership finalized.
In real estate we encourage a written offer where the terms are clear and specific. It l leaves little to surprise.
Family is complicated enough no need to make careless mistakes to sacrifice a relationship so dear.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri Sep 24, 2010
Consider consulting with an attorney who specializes in real estate, he/she will be your best source of advice and he/she can best handle all related paperwork.
0 votes
Terry Bell, Agent, Santa Rosa, CA
Fri Sep 24, 2010
You should contact a real estate attorney so the correct documents are drawn up, and if this was the result of an estate, you should also contact a tax professional. You will have to compare mortgage rates to see best alternatives to re-fi. Interest rates will probably never be this low again, so it might be best if you will be there a long time to consider a fixed rate mortgage. Best, Terry Bell, CPS RE, Santa Rosa, CA
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