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Quick question for the group before we contact the attorney handling the estate. My SO is the executor of his mother's estate, which includes a house owned outright. He is interested in possibly buying out his 2 younger brothers.
He would need to borrow the money to pay out the 2/3. I can't seem to find out specifically:
1- can he take out a traditional type of mortgage?
2- if not a traditional, outside of a personal loan, is there another type of loan he can possibly secure
?
Start with an independent appraisal that will pass muster with the Orphans Court (probate etc).
With that in place and a contract the siblings all agree to...
whatever sort of loan the buyer can secure (credit, DTI, etc) will do the job.
Thanks for your feedback.
We've had a day of death value done and he wants to offer them their equal share of that. His concern is he's reading because the home is "free and clear" there is no mortgage to assume and he cannot apply for one to do the buyout. He'd have to do a hard money loan then convert to a traditional mortgage (if possible).
We've had a day of death value done and he wants to offer them their equal share of that. His concern is he's reading because the home is "free and clear" there is no mortgage to assume and he cannot apply for one to do the buyout. He'd have to do a hard money loan then convert to a traditional mortgage (if possible).
Find out if the transaction can be structured as a purchase from the estate. Then the estate could pay out the money received to the other two brothers. The two brothers would probably have to prove the estate with a document agreeing to allow the sale and accept money in lieu of the property interest. Your state law/practice may or may not allow that.
Alternatively, the estate will transfer ownership to the three heirs. Your SO should be able to get a standard mortgage loan to buy out the interests of the other two. That's not an unusual transaction and I see no reason a mortgage loan would not be issued (assuming your SO is otherwise qualified and the house appraises).
Find out if the transaction can be structured as a purchase from the estate. Then the estate could pay out the money received to the other two brothers. The two brothers would probably have to prove the estate with a document agreeing to allow the sale and accept money in lieu of the property interest. Your state law/practice may or may not allow that.
Alternatively, the estate will transfer ownership to the three heirs. Your SO should be able to get a standard mortgage loan to buy out the interests of the other two. That's not an unusual transaction and I see no reason a mortgage loan would not be issued (assuming your SO is otherwise qualified and the house appraises).
Thanks! This is the kind of info I've been unable to find via Google (something plainly written). Off to leave a message for the estate attorney and pick his brain/get his advice.
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