February 11th, 2010
no equity in the house, partner wants to buy me out -?
my ex partner wants to keep the house but buy me out – there is no equity in the house at the moment due to undervalue by the bank the mortgage is with. ex is a big big earner, but doesnt want to get out a loan – he has banked with them 20 years or more.
i have been told by my solicitor to stay in the house as it is in joint names (Equal) and this will make him raise the money quicker to get me out as he is desperate i leave, but is adamant he wants me to get back on the property ladder.
hopefully the bank will revalue the house or he will get a remortgage as once this is sorted, he says he is going to move and buy a much bigger house – due to his large salary.
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Filed under: Buy Property
Do as your solicitor says and stay in the house. If he earns well, then he won’t have a problem raising the capital. If he wants you to leave, then am sure he will manage to raise the funds
Good Luck
Okay i have to ask you first did you have a lic real estate appriaser appraise your property within the past 3 months? IF not you may want to do so. Reason why is bc it sounds like their might be vaule there but your being told there isnt to force you out of house, then to add you back into the loan bc maybe you have higher credit score i say DONT DO IT WITH THE PARTNERS BANK!! You can request to have either copies of all documents for the house/ new loan. Or recommend someone to do the loan for you. The purpose of me mentioning this to you is bc if you get bought out you need to make sure that you are getting a fair split otherwise you are blindly taken advantage of. I do loans myself and have been in the biz since i was 17 and i am going to be 24 soon so i know a bit. I have seen this at least two hundred times. Contact me if you need asistance or have any other questions. thanks
chad
I’m at a loss, what is your question/ no insult intended but I can’t see what you’re asking, please clarify.
If there is no equity than the house is not worth anything in a way as the loan is a burden not an asset.
In that case I would let the person buy me out in a New York minute as it doesn’t make sense to hang onto the house for financial reasons.
Everybody knows the prices will go up again so if you want to wait about 4-6 years and pay the payments on it that’s a way to go too.
Right now however (june 2007) I see a lot of houses getting boarded up and I see it increasing week by week so in this market houses are easy to get.
I say take the offer.
Get independent appraisal of property. You may not want for the bank to be the only appraisal of the property. Also, there may be knowledge out there about something new coming into the market that will cause the value of the property to rise sharply. You do however share undivided in this, partner can live there if they so chose. If independent appraisal comes back with equity in property, ask partner to refinance elsewhere, or take back a second mortgage for the difference. Be sure to register your second position legally.