Parent to child mortgage. Need advice.
So I have a a friend that wants to purchase a property. I have agreed to be her agent. I'm still much a novice when it comes to real estate due to the fact I work a full time job in sales. Her parents will be paying for the property and will be doing a parent to child mortgage on the property. I have a few questions. do I submit it as a cash offer? Also, do I need to submit with it? I'm guessing proof of funds from the parent's account. Anything else you can think of please feel free to add. I would really appreciate it.
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If I understand the question, parents are going to buy the property all cash, and then selling it to their kids via seller financing?
If so, you might be overthinking it. Mom/dad are the buyers. They buy the house, they close, they own the property, your involvement ends with your referral to a real estate lawyer.
Real estate lawyer draws up the paperwork for the seller financing. Parents carry a note, kids buy the home. With whatever down payment and interest rate and all that that's mutually agreed to by parents/kids.
At the end of the day, the kids own the house and have a mortgage. Parents are the mortgage lender and collect their payments.