Don’t let layoff derail condo conversion refi

2 workarounds offer hope

DEAR BENNY: We are three owners of a property in a nice neighborhood. We own the property as tenants in common, and have shared an interest-only loan since 2005. We are in the process of converting the property into three condominium units. One of the owners lost her job last spring and is now self-employed. The other two owners' employment status has not changed. The loan broker we have been in contact with (for the eventual refinance into three individual mortgages) tells us that the owner who is now self-employed will have the hardest time getting a loan (it will be in the neighborhood of $1 million; the other two will be under $500,000) and will likely have to file her current tax return before she will even be considered by a lender. The other two owners would like to refinance immediately. Can the two owners go ahead and refinance and pay off their shares of the common loan (and have their names removed from the loan), or do all three owners have to refinance at t...