Delawaredave5
Full time employment: Posting here.
- Joined
- Dec 22, 2004
- Messages
- 699
Is it possible to loan an extended family member money towards purchase of a house that is secured by the equity in the house ?
Say a $150,000 house and the person wanted to "loan" $50,000 in equity to an extended family couple. The couple would add $100,000 mortgage and buy house (ignoring closing costs).
Would the person loaning the money be able to have their name on the deed but not on the mortgage ?
If things went wonky and couple couldn't stay in house, assume it would be sold - would the mortgage be satisfied first and whatever equity left go to the "family loaner" ?
I'm just trying to understand the technical "securability" aspect. I know about the "drama risks"
This is hypothetical at this point. Just trying to see if anyone's done something like this.
Say a $150,000 house and the person wanted to "loan" $50,000 in equity to an extended family couple. The couple would add $100,000 mortgage and buy house (ignoring closing costs).
Would the person loaning the money be able to have their name on the deed but not on the mortgage ?
If things went wonky and couple couldn't stay in house, assume it would be sold - would the mortgage be satisfied first and whatever equity left go to the "family loaner" ?
I'm just trying to understand the technical "securability" aspect. I know about the "drama risks"
This is hypothetical at this point. Just trying to see if anyone's done something like this.
