The buyout idea sounds fine it will be easy since she is not on the loan if you want to keep that loan. You will quitclaim her off of title.Just from reading your post one can discern that you are better parted on this issue. The buyout plan sounds reasonable and easy. It doesn’t seem fair to hold her up from selling in a depreciating market or not buy her out,unless you had agreed in writing to hold it until a certain milestone was met.Maybe it would be better for you to take the initiave that you have shown in asking for help here, further and get this over,for your sake as much as hers. If it takes a refinance to buy her out, and you don’t have to confirm or deny that, I suggest you get going after making sure you are comfortable with the higher debt load and if not it looks like you need to sell. Be careful about putting the house on the market and giving up and then trying to refi. Some lenders don’t like that.

That’s just my faceless, nameless, 2cents. Take it for what it is worth.