Legal Question in Real Estate Law in Texas

secured real estate loan to family member

I need to know which legal doc(s) are appropriate for the following situation.

I plan to pay off the remaining balance of my mother's home loan and execute a secured loan agreement with her for that loan balance, which would involve an amortization schedule. This is to reduce her monthly expenses.

I trust that my mother will pay as long as she's able to pay (she's 77 and still works). If she's no longer able to pay, I would not demand payment, but would want to protect my secured interest if she dies or we're forced to sell her home in order to pay for her assisted living arrangements. The residual value of the proceeds of the sale of the home (net of her costs of care as long as she's alive, and net of my secured unpaid loan balance) would likely be split amongst her four sons, though she does not have a will (yet). I will also need to develop a will for her.

I am a Phoenix resident. Her home is in Austin, TX (Travis County).


Asked on 6/02/09, 6:39 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: secured real estate loan to family member

You would need TX documents. I typically charge $500 for a loan package. Also, assuming she has no estate planning issues, a will, power of attorneys (statutory durable & medical), and advance directives would also be in the range of $500. Shop around for an attorney in Travis County who can help your mother.

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Answered on 6/02/09, 7:45 pm


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