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Would You Foreclose on Family?

Would you be willing to foreclose on your own child? It’s one of the important questions to answer before you even think about loaning money to your kids to buy a house.

According to a February 16 article by Craig Guillot at nasdaq.com, “As more young people struggle to qualify for mortgages despite record-low mortgage rates and affordable home prices, some parents have decided to step in and become their child’s mortgage lender.”

If done carefully, such a loan can be a source of income for the parents as well as a leg up for the kids. Guillot offers some excellent advice from Rick and several other sources on ways to prevent lending to your kids from becoming a financial and family disaster.

Read “Is lending to your child worth the risk?” here.

 

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