Posted on: 16th Nov, 2010 10:41 am
my sister is selling my mother's house for $375,000, but we would like to keep the house in the family & sell it to my neice & her husband for approx $200,000. the house is currently evaluated for taxes at $465,000. we are thinking about getting a second mortage for the difference, so that my mother will get the full sale of the house. if my niece sells the house at a later date, when the prices of houses go up and their salary , they would then pay off the second mortgage. is this possible and does this sound feasible.
Fine for your Mother. She would get $400,000. The rest would only work if your niece was also responsible for the second mortage. If you were responsible for making the monthly payments, and your niece never sells the house, then where does that leave you as far as getting paid back. You would be better off renting the house to your niece until home values recovered.
Whomever buys the home must be the one who gets the mortgages. A third person not on title cannot get a 2nd mortgage on the home.
But such a situation should be discussed with a mortgage professional to see what your options are.
But such a situation should be discussed with a mortgage professional to see what your options are.