A grandmother has shared her heartbreak as she faces losing her own home after helping her son to buy his first property with his partner – only for them to allegedly stop making the loan repayments.
Appearing on Channel 9’s A Current Affair, Janice Lang revealed she agreed to help her son buy his first home for his children and became a guarantor on the loan, putting her own home up as surety.
“The Australian dream is to own your own home, we wanted to give that dream to our son,” she said on the show. “My grandchildren are beautiful and they deserve everything, and that’s all we wanted to do.”
However, she claimed her son has failed to meet his mortgage repayments for the $210,000 loan ever since, meaning she could now face losing her own property.
— A Current Affair (@ACurrentAffair9) July 29, 2019
It’s sparked a nasty family feud and it ended in a violent outburst on air, as the son appeared to launch himself at a camera man as he attempted to interview him outside his house.
Due to the couple not making their repayments, their loan has now increased by $30,000 – and as that increases, Janice’s home looks to be more and more on the line.
“We were married here, we’ve got pets buried here, we’ve had so many fun times here as a family, we just love it, and we work hard for it,” she added.
“It just went really bad. He wasn’t going to be happy until he saw us bankrupt.”
Lending money to adult children is fairly common in Australia, with parents trying all they can to help their families secure a future in a tough property market.
However, money expert Effie Zahos told the show that parents need to be wary and know the costs should their adult children not live up to their end of the bargain.
“When you become a guarantor, you are actually saying that I will actually step in, if you can’t make these repayments, so you will become responsible for that debt,” she said on the show.
She added: “It is a case of sitting down and talking with your children, if I am going to do this, it is under my conditions, these are the rules, and there are lots of legal documents that you can download or get some assistant to set up that arrangement.”
The Commonwealth Bank has since confirmed it’s doing what it can to support the family in repaying the loan.
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