New York Times Mortgages Editor, Lisa Prevost, interviews Cathy in “Advice to Lending to Adult Children,” October 9, 2015.
“Parents often come to the rescue when their adult children need help putting together enough cash for a down payment. Whether they offer financial assistance as a gift or with the expectation of repayment, parents acting from the heart might want to consider a more businesslike approach.
Cathy Turney, a real estate broker in the East Bay area of San Francisco, said she has watched young homeowners walk away from their houses after values fell below their mortgage amounts during the recession, even if they could still afford the payments. And “there went their parents’ down payment money,” Ms. Turney said. “That’s the risk — the kids aren’t necessarily going to treat it as well as if they had invested their own blood, sweat and tears in getting that money,” she said”
Read the full article here: http://nyti.ms/1LmsY4x