QUESTION
I want to lead my son money to purchase a business, is there a way for me to have something drawn up attaching his house in case he doesn't pay
Asked on Apr 26th, 2016 on Business Law - New York
More details to this question:
I am near retirement and really can't afford to loose the money. So if I lend him the money can is there something I can have stipulate in a legal document that attaches secures it with the equity in his home?
1 ANSWER
Yes, there are various methods by which the house can be used to secure repayment of the loan. However, if he already has a mortgage or other lien on the house, your interest would be subordinate to prior lienors, meaning that if your son doesn't have enough equity to pay prior lienors (such as a morgagee), you may still be at risk.
Answered on Apr 27th, 2016 at 4:09 PM