Hello,
I am a real newbie in real estate topic. Never had a mortgage (renting an apartment).
The situation:
my son asks me to take a mortgage for a new condo. I don't have to put a penny.
He will put 10% for the down-payment and will give me at least 5 payments amount as a security fund in the scenario that he will not be able to pay. In the situation that 2 payments will not be made I can put the apartment for sale. I told him that I do not accept any renting to other people.
The question:
in the scenario that withing a first year something will go wrong and I will need to sell the apartment.
What are the consequences beside a headache? Is there a guarantee that after all 10% of down-payment could cover all the losses related to fast sell? My point is that I can go for it (I want to help to my son) but in any circumstances will not be involved in paying the money out of my pocket.
I am talking about Montreal. The cost of the apartment somewhere in between 250-300K.
I will appreciate if somebody can provide an advice based on the general info provided.
What are possible traps and etc.
Thanks.
Michael.
I am a real newbie in real estate topic. Never had a mortgage (renting an apartment).
The situation:
my son asks me to take a mortgage for a new condo. I don't have to put a penny.
He will put 10% for the down-payment and will give me at least 5 payments amount as a security fund in the scenario that he will not be able to pay. In the situation that 2 payments will not be made I can put the apartment for sale. I told him that I do not accept any renting to other people.
The question:
in the scenario that withing a first year something will go wrong and I will need to sell the apartment.
What are the consequences beside a headache? Is there a guarantee that after all 10% of down-payment could cover all the losses related to fast sell? My point is that I can go for it (I want to help to my son) but in any circumstances will not be involved in paying the money out of my pocket.
I am talking about Montreal. The cost of the apartment somewhere in between 250-300K.
I will appreciate if somebody can provide an advice based on the general info provided.
What are possible traps and etc.
Thanks.
Michael.