Mortgage question

[joepar2567]

I plan on "investing" in a house my daughter is going to buy in Colorado by providing a 20% downpayment for her loan. This would be $30,000 or more.
We have agreed that I will share in the equity when the house is sold or refinanced. I am not concerned with her "handshake" part of the deal.
I am interested in finding out how I can protect my "investment" from outside creditors, lawsuit's etc..

 

[seniorjudge]

I am not concerned with her "handshake" part of the deal.

That is your first mistake; get everything in writing and treat her as if she were a total stranger.


I am interested in finding out how I can protect my "investment" from outside creditors, lawsuit's etc..

Pay your bills and gets lots of liability insurance.

 

[joepar2567]

Is there a legal way I can maintain rights to my money in her house? For eaxmple, loan her the money with no payments due until the house is sold, etc.?

 

[seniorjudge]

Q: Is there a legal way I can maintain rights to my money in her house? For eaxmple, loan her the money with no payments due until the house is sold, etc.?

A: Put a mortgage (in CO they uses deeds of trust) on the land. I.e., you are the lender and she is the borrower.

 

[HomeGuru]

yes, hold a recorded second mortgage on the property.