Legal Question in Real Estate Law in Georgia

Loan to son for his real estate purchase

We are loaning $15,000 dollars to our son and his wife for their downpayment on house in Atlanta area. seems that we need a promissory note and security deed to secure our position and make sure the terms are understood by our son and by us. Son and his wife will have first and 2nd financing on the property. can you advise what should be done?


Asked on 10/28/06, 2:34 pm

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Loan to son for his real estate purchase

You are on the right track - just get a lawyer to draft the documents and answer other questions. On a non-legal note, I'll also mention the general rule for loaning money to family or friends: Loan what you can afford to lose to maintain the relationship.

Read more
Answered on 10/28/06, 3:41 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Loan to son for his real estate purchase

You need answers from a Georgia lawyer on the specifics, but I should point out that if your son uses a first and a second financing, you will probably be taking a "third" unless one of those other lenders will subordinate, which is unlikely. Indeed, most mortgage lenders are not happy to find out that the down payment is being borrowed; that represents an additional burden on the homeowner's ability to meet his first and second mortgage obligations. Has the source of the down payment been disclosed to the other lenders?

Read more
Answered on 10/29/06, 12:19 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Georgia