Posted by chris on October 26, 2000 at 19:56:04:
James- I’m not an attorney, so make sure you run everything through one after you all have decided on what you want to do.
Have you approached the family member yet to buy their interest with a quit claim deed? If you are going to keep the properties for yourself to owner-occupy you could consider getting a purchase loan to pay off everything if the loan to value is not too high. It looked like one was paid in full and the other could cash out all of the debt at about 65%LTV which you should be able to arrange easily. Right now it seems to me that the way to go to get what you want is for you three to buy the property from the estate with a quit claim deed from the fourth non-wanting family member to dissolve her interest. You need to run this by her to see what it is she needs to give up her claim and if she tells you a lump sum of cash, see if she can take some now with the rest later. To be on the safe side run everything through an attorney to make sure all estate type laws are met in your state.
As heirs you could freely take over the existing property loans even with a due on sale clause as allowed under Garn-St.Germain if they have a good rate. Then you just need to deal with the other creditors. Give them a call to see what can be arranged.
If you need financing guidance please check out the finance board on this site at http://www.real-estate-online.com/real-estate-financing/wwwboard6/index.html