My 2 siblings and myself inherited our mother's house last year, which was paid off.

She had quit claimed the property to the three of us.The quit claim deed has not yet been recorded with the county. I have recently been considering purchasing the house to buy out my brother and sister. What options should I consider to do this? Do I need a standard mortgage? Can I do a refi or home equity to pay off my siblings? The house has a value of approx. $230k.

Thank you in advance!

1 Answer

Hello. I am confused on one thing. You say you inherited the house, but that your mom signed a quit claim deed prior to her passing. If she conveyed her interest to you and your siblings before she passed, you didn't inherit the home. Note that there are tax implications depending on how/when you and your siblings took title, I'd consult a tax adviser or attorney on that. I would definitely get the quit claim deed recorded ASAP, I don't see any reason to not do so. Once it's recorded, you three will be the legal owners of record, and at that point you can look at buying them out. Keep in mind that a quit claim deed only conveys whatever ownership interest the prior owner had. For instance, I could give you a quit claim deed to the Brooklyn Bridge, but if I am not the owner, it is meaningless. Presumably your mom had complete legal ownership of the home, but thought you ought to know the distinction between a quit claim deed and a general warranty deed (which a title company prepares after researching all liens and claims of record against a property). Yes, given that your credit/income meets lending guidelines, you should be able to take out a mortgage to buy out your siblings' interests. Your personal circumstances (credit/debt ratios/goals) will determine which loan option best suits your needs. Hope that helps, glad to answer any other questions if you like. Ted