Wow! This is a difficult question to answer appropriately. It would be rather presumptuous of me (or anyone else) to give you advice on what could be a very emotional decision. God bless you for being so generous to your daughter. I hope she fully appreciates it. From your end, there may be some considerations. Gifting that amount of money may have tax implications for you and your daughter. I would recommend speaking to your accountant or tax attorney regarding the gift because when your daughter goes to obtain the mortgage, the bank will want to know where the $191,000 came from. They will probably want an affidavit saying that she does not have to pay the money back. If you decide to hold the entire mortgage, there will also be a savings of the much of the closing costs associated with getting a mortgage through a bank. There are other considerations such as what happens if your daughter defaults on the bank loan putting your gift at risk of foreclosure. Good luck with your decision.
Century 21 Princeton Properties