hi all there,
few years before, my in-laws asked for a loan for a down payment so they could buy a house. We loaned them $10,000. They couldn't pay us back right away.
Their marriage broke up and they put it in the divorce agreement that they would maintain ownership of the house. upon father in laws death, my mother-in-law would assume ownership of the house. The divorce settlement further agreed to pay us our $10,000 later when she sells the house.
what happens if the mother-in-law decides to keep the house. can we claim any interest for our loan?
any advice. Thanks.

hello, try to record a mortgage on title, then execute promissory note and mortgage. they reflect the total and the agreed upon interest rate which interest payment would be calculated from recordation to time of payoff.
remember one thing, if the propery is never sold, you will never get your money back. so, tell your attorney to put in a cause that references a fixed term of the mortgage.

thankz for the advice.

A mortgage is basically a loan specific to the real estate market. Typically, it covers 70-90% of the purchase price of a house or other property, with the penalty for non-payment being foreclosure, or reversion of the property to the lender. They are available from most banks, credit unions, portfolio lenders and some government agencies.

Mortgage loans usually employ a 30-year repayment (or amortization) schedule. Payments are a changing combination of interest and principal, so that in the early years a payment mostly consists of interest on the outstanding principal balance, but in later years the mix becomes much more heavily weighted toward paying the principal itself. There also is private mortgage insurance to consider, which is required if less than 20% is put down on the house. It has gotten easier to actually get rid of this extra payment as soon as possible.

Learning the administrative and legal aspects of the loan process is essential for anyone considering a loan. A borrower should know what contracts and documents he or she will encounter, and how to negotiate through the paperwork. Also, it is important to be aware of what fees may be assessed and how to minimize or eliminate them wherever possible.

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