loan from relative, Financing advice

[Xavier Xthrax]

I have a deal where a relative of mine sent me about 20k to buy a house for his son to go to school. The plan was I would assume the loan, he would donate the money, and would also receive interest in the property.

I few months later House is purchased but I found out there is a clause in the mortgage for the lender to call the note if any interest is transferred. So now the relative wants the money back right now or wants to turn sent money into a loan with the security being the house. The way I would pay off his version of the loan would be to let his son live there for free and deduct an amount each month until its balanced. I did not like this solution because it means negative cashflow and I would question the enforceable of the lease.

Right now, I have about 10k in cash, and 5k in credit card balance. Looked into getting a small personal loan but all offers seems to have unreasonably high interest.

What do you think is my best solution in this situation?

Should I go for the small personal loan that is at least unattached to the house?

Or maybe I should split the interest like the original plan and pray that the mortgage lender never finds out.

Thanks,