I inherented the house... he has offed me 100,000 down.. bal 500,000 at 6% interest for 5 or 10 years what do I do to protect myself if I take this offer?
2007-02-20 03:36:36 · 4 answers · asked by sharryker 1 in Business & Finance ➔ Renting & Real Estate
You need to record the contract and the promissory note as a mortgage created btw the two of you. You can pay a title company to do the necessary recording/registration.
BTW.....I would do a 5 year note balloning in the 6th year since the rate is 6% fixed for 5 years (compared to Prime rate which is now at 8.25% or even 1-Year LIBOR at 5.47%) ...and this is highly favorable for the borrower. So a 5 year ballon sounds reasonable. Also, make sure the payments are amortizing i.e. include principal & interest.......
2007-02-20 04:23:37 · answer #1 · answered by boston857 5 · 0⤊ 0⤋
Well if you inherited it I assume there is no loan against it (free and clear).
Go see a lawyer and have him write up the agreement.
You'll get $100K and the balance over 5 or 10 years.
If he defaults, you get to keep all the money collected plus you get the house back.
The lawyer will have to do the filing of the documents in any event (land transfer, ownership etc)
2007-02-20 03:52:32 · answer #2 · answered by Johnny 5 · 0⤊ 0⤋
carry the balance as a second mortgage and make sure it is recorded!! your title company can help you with this and should have all the paperwork. if the borower does not pay you you can foreclose on the house just like the bank!
2007-02-20 04:52:07 · answer #3 · answered by koolkeynan 2 · 0⤊ 0⤋
nice offer take it?
now a days interest rates for peronal loans are increasing
if he offers at 6.
do the deal.
2007-02-20 03:41:52 · answer #4 · answered by ritesh.modi 2 · 0⤊ 0⤋