Securing a loan on a parent's property

tamzing

My brother is in the middle of a relationship split, & he wants to take out a large loan which he plans to secure against my mum's house. I think this is a really bad idea. Please can anyone help me with ways I can convince her that this is not a good way for her to help my brother.
Thanks.

Emmzi

what does he want the loan for?

is your mum senile or of sound mind?

hcb42

If he defaults, she loses her home...

I hope she doesnt do it, shame on your brother, perhaps he is the one you ought to persuade.

27col

Tell her that if he defaults on the loan it will be her who will be out on the street. If that doesn't convince her then she really is senile or of unsound mind.

paddyrg

Guaranteed loans (which is what this effectively is) are always expensive and often devisive, coming between families

LovelyLeeds

tamzing wrote: »

Please can anyone help me with ways I can convince her that this is not a good way for her to help my brother.
Thanks.

Hopefully, when other posters see this thread, they will pile in with completely valid and reasonable input as to why your mum should steer well clear. Show her this thread when it's run its course.

And yes, shame on your brother for leeching on your mum's heart and goodwill - awful.

somethingcorporate

Whilst I can appreciate she is only wanting to help support her son you should show her a few of the lending money to friends and family threads where it has all gone wrong, and often that is simply unsecured lending / borrowing. If this went wrong the consequences would be absolutely dire, your parents would lose their home to cover your brothers greed.

Do everything you can to pursuade them not to.

RichGold

You're absolutely right. Its a really bad idea.

Emmzi

um, are we sure we know it's a bad idea yet?

"lage amount" is subjective

and if mum is a grown adult who knows what she is doing

and if wife is mental and it's worth it to the family to pay her off...

just saying, more detail before judgement! for all we know bro is a victim of DV etc etc

somethingcorporate

Emmzi wrote: »

um, are we sure we know it's a bad idea yet?

"lage amount" is subjective

and if mum is a grown adult who knows what she is doing

and if wife is mental and it's worth it to the family to pay her off...

just saying, more detail before judgement! for all we know bro is a victim of DV etc etc

Can you give a scenario when it would be a GOOD idea please?

Emmzi

It's five grand to finalise the divorce settlement, brother has a steady job and low monthly outgoings, mum can get the money fast and is happy to help and of sound mind. It's her house, why shouldn't she do what the hell she likes with it?

OP may be worrying about his inheritence. OP may have genuine concerns. But why do kids get to a certain age and assume mum has lost her marbles just because she has different ideas about family values?

I may be completely wrong but there isn't enough info to advise either way. And if MY kids started telling me how to run my finances after I'd managed to raise them through good and bad financial times I'd tell him to do one. Old =/= stupid, senile, vulnerable, neccessarily! How about some respect for the oldies?