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Buy-out/Refinance Steps

Hi -

My roommate and I bought a condo 3 years ago and I am looking to buy him out.  At the same time I'd like to take advantage of low rates and refinance.  I'm trying to figure out the steps we should take to get both done as easily as possible.  We need an appraisal done in order to decide on a fair value  but I don't want to appraise twice if it can be used both for the buy out and for a refinance. 

We are both on the mortgage documents and title, FYI.  Any help is greatly appreciated!

Matt
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December 27 2011 - Charlestown
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Answers (3)

Profile picture for mboom3
Thanks for your responses.  I have started the process of refinancing/buyying out and am trying to understand if/how I might get $$ out of the process by way of the proceeds check mentioned below in order to pay off my roommate.  I met with a morgage guy and he wasn't sure about the rules but did think that a proceeds check could be possible if the property appraises at a high enough value.  He currently has me applying for a straight refinance (approx 91% LTV) but if getting $$ out is possible does anyone know the rules concerning that when the title changes? 

I hope this makes sense!  Thanks in advance!  I'd much rather try to qualify at a higher loan amount, get a proceeds check, and pay off my co-owner now as opposed to owing him as we move forward...
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January 12 2012
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To further Dave's comments: You need to apply and qualify by yourself. Have you determined what the buy out is, or will this be decided by the appraisal? At the closing, your roommate will then sign new deed which will remove him from the title. New deed is probably about $100 for attorney to prep and $175 to record.  Once you close, there is a 3 day right of rescission period, then you get the proceeds check which can be used to pay off your roommate.

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January 02 2012
Matt - apply for a  refinance in your own name to make sure you can qualify

use the appraisal that the lender orders  to determine value for your needs

ask title / escrow / loan officer  if there are any extra costs that you will incur  due to removing a person from title ( every state/ county  varies on this issue )
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December 27 2011
 
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