Any mortgage or real estate pros out there, need some advice what we can do!?

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3 years ago, before I moved to his town, my boyfriend purchased a home with both his money as well as a large downpayment from his father and his brother. I ended up moving into that house.

I have now decided that if I am to continue living there, I would like the house to be in my name and that of my boyfriend only since we have started a family together. We like the house and don’t really want to move. What is the best way to “pay off” his father and brother without selling the house? How do we know how much to pay them off (principle + interest) if the house will not be sold?
Is there any way of doing this rather than just selling the house and starting off together in a new one, when we like this house?
(I would like us to be financially independent from his family. At this point, we don’t have enough money to pay them off just like that, without a loan etc.)
I would like to add that the house is in my boyfriend’s name only (his father co-signed for it.) I would like to contribute a small amount, get my name as well on the house and his dad and brother paid off as quickly as possible.
Would we need a 2nd mortgage or try to get a loan to pay them off?
I have not made any financial contribution to the house thus far, but would like to.

6 Comments
  1. Reply
    Johnny A
    April 30, 2011 at 1:10 am

    get an appraisal and pay them their share…1/3 1/3 1/3

  2. Reply
    emland
    April 30, 2011 at 1:51 am

    Have them fill out a quit claim and pay them the appropriate amount of consideration.

    Find out the current market value and divide by the number of parties that have an interest in the house. Refinance in you and your BFs name (or BF name only.)

  3. Reply
    DAVE
    April 30, 2011 at 1:56 am

    Since you don’t have enough money to pay them off I would refinance pull out some of your equity to pay them off.
    Like the previous answer divide what that house is worth1/3.
    House values are down so it might be a good time to do it.

    EDIT: If you want to be on title and the loan while in the process of you refi have your mortgage company put you on.

  4. Reply
    moshe o
    April 30, 2011 at 2:54 am

    You don’t have to sell the house.
    You should get a quitclaim deed from the father and brother, surrendering all rights and title on the house to your husband, and you should be added to the title as a co-owner.
    You may be able to get the money to pay off the father and brother, from the bank.
    You should use a professional assistance in this matter in my opinion.
    If you need any farther advice or assistance in this matter, you can email me @ moshe_omer@yahoo.com

  5. Reply
    Tres7
    April 30, 2011 at 3:41 am

    With rates being where they are now and the market what it is, the best route would more than likely be to have the property appraised by an appraiser that would be approved by your lender that you use to refinance your 1st and 2nd mortgages into one. If you use an appraiser that is approved by the lender then you will not have to pay for a second appraisal in your closing cost. You can use the same appraisal. With the monies from your refinance…..Pay off your boyfriend’s family and you both are independent again. Good Luck to you!

  6. Reply
    A
    April 30, 2011 at 3:56 am

    I would recommend refinancing the home. The father (and brother?) can sign a Quit Claim Deed (QCD) to relinquish their right to the property during the process. The re-fi through a lender will be in your and your boyfriend’s names only and a new deed issued in your names.

    As for paying the father and brother, find out how much equity is in the house. Finance the repayment into the mortgage by using the equity (property + repayment $ = refi amount). Ex., if the father put in 10K, and there is 25K in equity, offer them something in between. Hopefully the appraisal value of the property has increased over the 3 years, and with the monthly mortgage payments (assuming they were not interest only) there should be a substantial amount of equity available.

    If you still have questions about the numbers and process, talk to a mortgage broker where the current mortgage is held. They can quickly check your credit and an estimated appraisal value, and tell you financing options.

    Good luck.

    Adrianne Ford
    Broker Associate
    Home Real Estate

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