Also, the San Carlos, CA-based transaction involving real estate agent Lottie Kendal went through Virgin Money (www.virginmoneyus.com) a social lending service, which gives friends and family a more structured way to lend or borrow money with each other. The mother in China transferred the funds to Virgin Money, which then advanced the funds to the seller of the home. The daughter in San Carlos, CA is now making payments to Virgin Money, based on the frequency and interest rate set by the mother. There is little risk of mother and daughter squabbling about missed payments.
And sometimes it’s best to walk away from even the most generous offers.
Mr. Shapiro says sometimes the best way to avoid a family fight is for the young couple to put less down, buy mortgage insurance and enjoy family gatherings.
“If it’s a parent, I’ve many times counselled them that it would be better for the children to borrow more money than for you to bring up [registering the mortgage and] expose all the raw emotions. That’s sometimes my recommendation,” he says.
As for the Becks, all seems to be going fine with their family mortgage but Susan still has some doubts.
“The arrangement has gone so far so good. No problems yet. I’ve had no issues and they’ve had no issues. But I’m not sure that I would do it again. I’d rather just go through the banks and have fewer headaches. They are older so if something happens, the kids would get involved. In two years we’ll probably get an institutional one. Hopefully I’ll win the lottery and pay it out,” says Ms. Beck.
Keywords: mortgage
