Legal Question in Real Estate Law in Indiana

personal real estate loan

A wealthy friend wants to loan a person $96000 to buy a home. A notorized legal agreement will be drawn up to state that the borrower will pay $400 per month for a total of 21 years which would include a one time interest rate of 5%. If the loan is defaulted the property will be sold and the proceeds will go to the lender. If the lender passes in death the loan will be considered paid in full. Are there any ramifications that need to be considered with this transaction?

Asked on 7/13/08, 9:20 pm

2 Answers from Attorneys

C. David DuMond Law Offices of David DuMond

Re: personal real estate loan

There are very many "ramifications" involved in the proposal you outlined, more than can or should be dealt with on a free consultation, online or otherwise. The "wealthy friend" lender and the borrower need to stop monkeying around with self-help and free advice, and make an appointment with a real lawyer experienced in real estate mortgage transactions. Since the wealthy friend and the borrower have adverse interests, they should both retain separate counsel. And they should both cheerfully pay the fair fees charged by these lawyers. Good luck.

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Answered on 7/14/08, 11:43 am
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

Re: personal real estate loan

I agree with Mr. Dumond. There are far too many ramnifications to provide an answerin this kind of forum. YOu both should hire counsel. Good luck.

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Answered on 7/14/08, 3:12 pm

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