When family members sell homes to other family members, it can go bad—fast.
In fact, we just had this happen again last week. Four or five times a year we get a call where a family member is selling to another family member and it gets all messed up.
Sometimes the purchase price and the gift equity they want comes through in such a way that when the underwriter gets the loan, they have to demand a down payment. And the issue is caused by the way the contract is set up.
In the transaction, there was a kind, real estate friend. Between he, myself, and the client, we worked out the details on how to set it up properly so that the son did not have to bring in a massive down payment.
So really good advice on family-to-family deals can prevent really big problems in the loan process. Now, I’m not a licensed real estate agent, but I can help give advice on the loan side. When setting up a real estate contract, you’ll want to talk to a real estate agent.
So feel free to give us a call! We would love to answer any questions and help you strategize this family-to-family deal so that it works really well for your family and accomplishes the goals that you want it to accomplish. Thanks a lot, and we look forward to talking with you!
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