Family loans – Need advice for loans between family members.?

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My mother made a personal loan to my son in the official 40K + It took a mortgage on their house. Loan will be repaid, but slow and inconsistent. Need PYMT plan to ensure all their money and interest are covered by repymt. would also need a file (somewhere) is to ensure the legality of the beneficiary or payer. I do not want links to loan companies want us to do, but need advice for interested models, sketches, etc., figure, etc., and how and where the file to ensure it is legally binding. Search for “how to” suggestions, no names or evidence of lending institutions.

4 Comments
  1. Reply
    Lauren F
    January 20, 2011 at 12:45 am

    You might want to have them register the loan on a peer to peer site such as prosper.com

    Otherwise, a notarized promissory note should be sufficient. Make sure both mom and son have a copy of the note. She can use it to take him to court if he doesn’t pay.

  2. Reply
    Judy
    January 20, 2011 at 1:17 am

    I heard of a website called
    virgin money . com
    It does the legal paperwork for families and friends that make loans between each other.
    Give it a shot. – I have no idea how much they charge. – can’t be much but its legal.
    Get it notarized at your bank, or your library.
    /

  3. Reply
    AMAZON
    January 20, 2011 at 1:18 am

    Hi, my best advice would be for you, your son and mother to get together and draw up a time line and payment that works for everyone. All responsible parties should be listed as well as the amount and when payments are expected each month. Next, I would find a public notary to watch each of you sign the form. That notary should notarized the document and each of you should get a copy. You may have to find a notary in the phone book or “Google” it. Many charge $ 15-25. I hope this helps.

  4. Reply
    physicist
    January 20, 2011 at 1:58 am

    Just write up a contract and have it notorized at the bank. That will be legally binding if it ever came down to a lawsuit.

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