Mortgage Loans From Relatives

Mortgage Loans From Relatives

  • SHANNON FOSTER-BOLINE
  • 03/29/17
Occasionally, when dealing with close relatives who might also become heirs, signing a note and handling the paperwork properly may seem like a needless effort but it could mean the difference in being able to take a legitimate interest deduction.
 
Home mortgage interest is deductible only if the loan is a secured debt which involves the buyer signing an instrument like a mortgage or deed of trust that makes the ownership of the home security for the debt. That instrument must then be recorded or otherwise perfected according to state or local law and the home, in case of default, must be able to satisfy the debt.
 
 
In a family situation, a parent, grandparent, or other relatives may decide to loan a buyer the money to purchase a home because they have it available and it isn’t earning much in certificates of deposit. They offer to loan it for a rate equal to what a conventional lender is charging but without the fees.
 
While it may appear to be a win-win situation, there could be problems if things are not done correctly. Even if the borrower makes the payments, they are not entitled to an interest deduction unless three criteria are met: 1) sign a debt instrument specifying the terms 2) securing and record the debt properly and 3) the home is sufficient collateral for the loan.
 
It would be prudent to consult with an attorney before you sign the final settlement papers to be comfortable that both buyer and the lender-relative are complying with IRS regulations. For more information, see IRS Publication 936 Home Mortgage Interest.
SHANNON FOSTER-BOLINE

SHANNON FOSTER-BOLINE

Real Estate Broker

About The Author

With a lifetime sales volume exceeding an impressive $233 million, Shannon Foster-Boline's reputation as an esteemed agent speaks for itself. Recognized for over seven prestigious designations and certifications including her Certified Residential Specialist® and her Graduate Realtor® Institute designations, Shannon's expertise and unwavering commitment to excellence are second to none. Clients consistently praise her responsiveness, infectious energy, and unwavering dedication to their success. When you choose Shannon as your trusted guide, you can be confident that she will be by your side every step of the way, advocating for your best interests and opening the doors to your dream home.

Shannon's unparalleled expertise extends across Knox County, Blount County, Loudon County, and the picturesque surroundings of Tennessee. She has successfully sold every type of residential real estate, from new construction to historic homes with unique architectural heritage. Actively involved in her local Realtors Association, Shannon is dedicated to promoting diversity, equity, and inclusion. She has taken on leadership roles, teaching classes on these vital topics and contributing to the betterment of her community. Shannon's curiosity, creativity, and relentless drive fuel her commitment to understanding her client's unique stories and helping them find their ideal homes.

Beyond real estate, Shannon is a well-rounded individual with diverse interests. As a devoted dog lover, she shares her life with two cherished pets, Jenner the Beagle, and Xena Warrior Princess, a rescued Yorkie Australian Shepherd mix. Shannon is also an avid gardener, cultivating her own food and exploring gardens around the world through her travels. Her zest for adventure has taken her to various corners of the globe, including Germany, where she lived and studied in her twenties. These experiences have nurtured her love for travel and exploration, and she meticulously plans trips that encompass cultural immersion, physical activities, and visits to historical sites.

Above all, Shannon takes immense pride in her daughter and wife, whose happiness and success bring her great joy and fulfillment. Professionally, her tenure as President at the Knoxville Area Association of Realtors stands as a testament to her commitment to effect meaningful change and foster a thriving real estate community. As she continues to serve a diverse clientele, Shannon takes pleasure in learning about their lives. Each person's story and goals are unique, but for each of them, Shannon strives to exceed expectations and deliver exceptional results.

For a truly remarkable real estate journey, trust Shannon Foster-Boline to guide you to your dream home and make your goals a reality.

Leadership & Committees

  • 2023 East Tennessee Realtors MLS Chair
  • 2023 East Tennessee Realtors Leadership Program Instructor
  • 2022 Immediate Past President East Tennessee Realtors
  • 2022 Tennessee Realtors Chair Diversity Inclusion Committee
  • 2021-2022 East Tennessee Realtors Board Liason Diversity, Equity & Inclusion
  • 2021 East Tennessee Realtors Chair Presidential Advisory Group Diversity, Equity & Inclusion
  • 2021- 2022 East Tennessee Realtors Governmental Affairs & Policy Committee
  • 2021 Tennessee Realtors Vice Chair Diversity Inclusion Committee
  • 2021 President East Tennessee Realtors
  • 2019-2020 Tennessee Realtors Diversity Inclusion Committee Member
  • 2015 East Tennessee Realtors Chair Education Committee

 

Awards

  • 2022 President’s Award East Tennessee Realtors
  • 2022 Realty Executives Associates Diamond Award
  • 2021 Realty Executives Associates Diamond Award
  • 2020 Realty Executives Associates Diamond Award
  • 2019 Realty Executives Associates Double Diamond Award
  • 2019 Wall Street Journal’s 1000 Best
  • 2018 Wall Street Journal’s 1000 Best
  • 2018 Realty Executive Awards - Southern Region Top 100 in GCI
  • 2018 Realty Executive Awards - Southern Region Top 100 in Units Sold
  • 2017 Realty Executives Associates Diamond Award
  • 2016 President's Award East Tennessee Realtors

Designations & Certifications

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