Expert: Dick Dennis - 8/22/2006

Question
hi;

my partner and i have recently split and I wanted to know what are my options in buying her half of the house out.  We are both on the mortgage and deed.  Our mortgage now is 113,515 and the houses are going for around 230,000.  Since she is on the mortgage is my best option to refinance and take cash out to buy her half?  also how much should be receive around?  We paid 129,700 for the house and it has been almost five years.

your help would be appreciated in this matter.
thanks

Answer
First, Charles, you are going to have to realize that until you do refinance the loan, she is going to be co-responsible for the payment of the mortgage.

Second, if you do not want to spend $300-$400 for a legitimate property appraiser, call in at least two VERY KNOWLEDGEABLE Realtors and ask their OPINION OF VALUE for the house. Ask them to put it in writing. Then take the average of the figures you were given and that would be the present value of the house.

When you finally settle on the lender that is going to refinance your property, tell that person what you are doing so that THEIR appraiser will give you still another estimate of value. While you are going through the process of refinancing, you have the ex-partner execute a QUIT-CLAIM deed to you that is not to be recorded until your refinancing is completed (chances are she will not trust that you will do give her the money due her anyway). She should give the executed quit-claim deed to the refinancing company. When they are finished with the whole process, the property will be in your name exclusively, your ex will have her money.

If either one of you have your doubts of the transaction is legitimate, consult with a REAL ESTATE attorney. I would say have the person who wanted the attorney to pay for his/her fee.

I wish you well.

Dick Dennis       dixiedee13@aol.com