Legal Question in Real Estate Law in New York

House Purchase

We are thinking of holding the mortgage so that our son can purchase a house. Is it true that we have to charge a rate of interest determined by the government? If so, what is that rate? Should we see either a lawyer or accountant about setting up the proper paperwork to have this done legally? Do you think this is an advisable plan or should he just go to a bank for a mortgage? We will both be retired soon and thought we could use his payments as monthly income as well as help him out with a lower interest rate?


Asked on 3/30/07, 8:02 am

2 Answers from Attorneys
Tracey Bloodsaw Law Office of Tracey A. Bloodsaw

Re: House Purchase

You should definitely see an attorney before agreeing to do such a thing because if he defaults then there goes your source of retirement income.

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Answered on 3/30/07, 11:09 am
Michael Moberg Moberg & Associates

Re: House Purchase

No you do not need to meet current interest rates for a lower rate personal loan. Although the law does provide limits on maxmium chargeable interest rates.

You should certainly discuss the advantages and disadvantages with an attorney and have him/her draft the legal documents to protect your interests.

You may contact me for a complimentary consultation at anytime.

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Answered on 3/30/07, 4:14 pm


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