Summary: I had a divorce 3 years ago during a chapter 13 bankruptcy I was paying on. My girlfriend lent me the 45k to get the ex off my back and I added her to the deed of my condo.
So now:
I need $45,000 to buy out the co-owner/GF of my home.
This condo is worth at least $150,000 and has no liens or mortgages on it currently.
I was on a chapter 13 bankruptcy and that was paid off and discharged August 12 of 24.
My FICO scores are currently between 683 and 720. Depending on the agency. I make approximately $85,000 a year gross.
What is the best way to get a loan in this scenario?
It seems no one wants to do a mortgage for less than 100k. I need some help! PK
Hale said:
Take the loan for 100k, pay her back and pay the rest back to the loan. Boom.
Yeah, but how do I get the loan in my name only when her name is on the house too? Is that possible? That’s what I am uncertain of. If I had it all figured out, I wouldn’t be here.
If you have 100% equity then I’d look at a HELOAN. It’s a home equity loan where the lump sum is wired at closing versus the typical draw period of a HELOC, since it’s not a line of credit. Rates are not bad and the LTV on this would give you better pricing on top of that. What state? I just did one of these with Spring EQ for a client where we consolidated all of her debt into a single payment and pulled equity for her to purchase a new roof.
Edit: can do loans this small at Spring since they specialize in these products. The last one I closed was $70,000 which no other lender really will touch.
Did she already agree to $45K buyout? If she did, she isn’t very smart. Her half of the condo is worth $75K, that’s what it should take to buy her out.
Macon said:
Did she already agree to $45K buyout? If she did, she isn’t very smart. Her half of the condo is worth $75K, that’s what it should take to buy her out.
She will take 40 really. But she wrote the check for 45 and I just want to get her off the deed (for my homestead) and get her the money back. We are still together. You don’t have to be stupid to be kind.
@Laken
Oh I love the kindness aspect. You should definitely give her the 75K then since her 45k invested for 3 years is certainly worth at least 75K but most likely more. You should be kind and give her what she’s owed which is the 75K. Preaching kindness is much easier than acting on it.
BTW I think a potential solution is get a mortgage for the 150 give her whatever and then invest the rest and use it to pay your mortgage.