Fergusonweb, Other/Just Looking in Hibbing, MN

If I pay for my sons house, how do I hold the mortgage ?

Asked by Fergusonweb, Hibbing, MN Wed May 9, 2012

I want to pay off my son and daughter in laws house in Wisconsin. They are going to pay me instead of bank (no interest). How do I go about holding a mortgage on the house so that it is still I their name (they are paying for it) and yet cover myself if something happened to them.

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Bphiggs, Home Buyer, North Richland Hills, TX
Wed Nov 14, 2012
Do it like I did it. You don't need to hold the mortgage. It's apparent you don't trust them to repay you. If I could not trust them to repay me, then I would not help them. It's that simple. I told my son that I was asked what would I do if he quit reimbursing me regarding my interest free loan to him. I told him that I told my friends that I would "whack him" if he double crossed me on his payments. I linked my savings account to his checking account and his monthly payments require about four clicks of his mouse !!! My son's payment schedule was spread out over a 6 year time frame. I gifted him 2 of those years so his Wells Fargo 15 year mortgage became a 4 year interest free loan gratis his Dad. [ Me ] ha ha !!!
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It has nothing to do with trusting my son or his wife..........it has to do with divorce, accidental death (heaven forbid) and subsequent estate fights with relatives and lawyers who do not know of such family deals.....I have every faith in my son and his wife but those are just the things I know today.....tomorrow is always full of things I don't know.
Flag Sun Nov 18, 2012
James Ryan, Mortgage Broker Or Lender, Leesburg, VA
Thu May 10, 2012
Attorney, Title company, tax advisor in that order. Sometimes, title firms are owned by attorneys and can handle this in house (no pun intnended), so to speak.

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Linda Reming…, Agent, Lodi, OH
Thu May 10, 2012
Hi Fergusonweb

As has been answered below, the best course of action is to speak to a local attorney. I would seek out one that specializes in Real Estate Law or Estate Planning. They will be able to assist you in preparing the note and mortgage that will meet all local and federal regulations to accomplish what you are seeking to accomplish. You might also want to consult an accountant for any tax planning consequences for either you or your son and daughter in law. It's always better to plan ahead than be surprised by a consequence that was not forseen when doing wonderful things even with your own money :)
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Roland Vinya…, Agent, Sprakers, NY
Wed May 9, 2012
Have the same mortgage as if you were a bank and they were the borrower. Make sure it is filed. I would have some (lower but reasonable) interest put on it out of fear that the IRS will impute interest (tax you on money you did not receive) if it is not there. You can gift that amount to them each year if you so choose. Each spouse can gift up to $14000, making a potential total of 4 times that amount.
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Bill Eckler, Agent, Venice, FL
Wed May 9, 2012
I'm sure there is a way that will cover both of your interests, however, as mentioned previously, your best course of action will be via an attorney for their advice.

Good luck,

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Maria Gilda…, Agent, Manchester, CT
Wed May 9, 2012
Hello Fergusonweb,

Your question has just been answered by two of the professionals here. Yes, an attorney can draft the document for you. All you have to do is discuss the terms and conditions you want stipulated on the note with him.

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Yes I understand the attorney and I appreciate this answer, but I was asking what is involved what has to be done, again I realize I can get an attorney to do this, I just want to know what is involved in Wisconsin.
Flag Wed May 9, 2012
Suzanne MacD…, Agent, Morristown, NJ
Wed May 9, 2012
An attorney can write the mortgage for you. Well worth the cost.
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My NC Homes…, Agent, Chapel Hill, NC
Wed May 9, 2012
A local Wisconson attorney can handle this for you easily.
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what is involved and can I do it myself (even though I inderstand the risk so please no "Oh my gosh hire an attorney comments" ) my understanding is you just file in the county courthouse a "mortgage" against the property
Flag Wed May 9, 2012
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