What would you do in this situation? Very stressed over this

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  • EmCarroll1990
    EmCarroll1990 Posts: 2,849 Member
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    That's a tough one. I was given advice of "do not lend money to a friend unless you can live with the possibility of not being repaid". If you are not in a position where you could make it a gift instead of a loan, simply explain your circumstance and hope the friendship is enough to overcome any hard feelings.

    I hope it works out for you.

    This is what I've always heard as well.
  • SavCal71
    SavCal71 Posts: 350 Member
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    I would, however, take out a loan and buy an interest in the property, if indeed that property is a good investment.

    I thought of this too, but usually a loan can 't be made on a property, or an interest in it be sold, whiile there are outstanding taxes. So the friend would have to pay the taxes first - which he doesn't have the money to do. So this looks, unfortunately, like a not logistically possible option.
  • liog
    liog Posts: 347 Member
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    I wouldn't do it for anyone, family or friend. It is one thing to borrow and pay back $200 it is another thing to take out a personal loan of a sizable amount.
  • spicy618
    spicy618 Posts: 2,114 Member
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    I was at lunch Sorry for my delayed response.

    Thank you to all who have responded. It's appreciated. :flowerforyou:


    The loan would be for over $5,000.

    It has to be approved and dispursed within the next 2 weeks or they will lose the property.

    To the person who mentioned "Judge Judy". I've watched her show over 10 years now and know exactly what you mean. :flowerforyou:

    I'm so torn over this. I have to give them a decision TODAY :(
  • LittleMissNerdy
    LittleMissNerdy Posts: 792 Member
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    Question, have they tried talking to the bank who they owe the money to? Perhaps they can explain that they'll have the money in two weeks and see if they'll be granted an extension?
  • neverstray
    neverstray Posts: 3,845 Member
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    I don't lend money to friends or family, I either give it to them, or I don't.

    I wouldn't take out a loan. If I had it in a savings account, I might give it to her. But, i wouldn't take out a loan for it without an agreement.

    Agreements are looked at as negative, but you'll have one with your loan. If you decide to do it, make her sign an agreement with a schedule of payments, and terms associated. It sounds mean, but just explain to her that you really can't afford to do this, so you are just protecting yourself.
  • madameduffay
    madameduffay Posts: 166 Member
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    Tough spot. The only way I would do it is if I had a legally binding agreement putting the land up for collateral and only if I could afford to make the payments myself (if only for a short-term period).

    With the land as collateral, it's not the same as just straight out lending money to someone. You could have some protection.

    But, I am bad with money myself, so I may not be the best person to offer advice : )
  • DaughterOfTheMostHighKing
    DaughterOfTheMostHighKing Posts: 1,436 Member
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    don't loan it... that can get messy... and don't co-sign either! give it or not. keep it clean.
  • spicy618
    spicy618 Posts: 2,114 Member
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    I might lose a good friend today. :cry:
  • MrDude_1
    MrDude_1 Posts: 2,510 Member
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    I might lose a good friend today. :cry:

    A good friend wouldnt ask something of you that you cant do.
    A good friend will stick with you, even if you couldnt help them.
  • garnold6
    garnold6 Posts: 1
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    Don't be stressed out about it. I don't believe a true friend would ever put you in such a predicament. That's conditional friendship, IMO.

    If you were to follow through, get the loan, and hand the cash over to your "friend", you might as well consider it a gift - especially if there's no documentation between you and your "friend". Without any documentation, I'd say the chances of such a loan being repaid are slim.
  • Wuggums
    Wuggums Posts: 339 Member
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    I might lose a good friend today. :cry:

    A good friend wouldnt ask something of you that you cant do.
    A good friend will stick with you, even if you couldnt help them.

    Agreed 100%. $5k is a lot of money to aka someone for and it sounds like said friend hasn't always been great about paying you back in the past - "give or take $200" doesn't sound good to me. If someone still owed me about $200, I'd be hesitant to loan them any more money!

    Besides, you say that said friend will pay you back when their tax money comes in. And what makes that person think that you can apply for a loan, have that loan processed, closed and disbursed quicker than they can get some "tax money" they are due? Unsecured bank loans can take some time to be processed and closed. Loans secured by property can take even longer. And if we're talking about waiting on a tax refund of any sort - that usually happens within about 10 days anymore. I agree with the consensus - don't lend the money. Find a good way to explain to your friend why you cannot (ie - it impacts your credit rating regardless of whether it is paid according to terms or not, and you're not in a great financial position to begin with). If you lose the friend, they weren't as good a friend as you thought...
  • jenj1313
    jenj1313 Posts: 898 Member
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    You have to make the decision yourself, but if you can't pay back the loan if the friend defaults, I'd say no.

    If you decide to do it, I'd make sure to see a copy of their tax return AND write out an agreement for repayment that specifies they use the return to repay you.

    Won't those payday loans do an advance on your tax return?
  • jkestens63
    jkestens63 Posts: 1,164 Member
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    Don't do it; The People's Court was built on scenarios like this.

    Exactly - and I happen to be watching The People's Court right now, lol.
  • shedoos
    shedoos Posts: 446 Member
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    I might lose a good friend today. :cry:

    A good friend wouldnt ask something of you that you cant do.
    A good friend will stick with you, even if you couldnt help them.

    This is ABSOLUTELY correct.

    Besides- as a mortgage originator, your friend should have access to easy loans at good rates based on the equity in their other properties. If they can't get their own loan, there is a reason.
  • NoExcuseTina
    NoExcuseTina Posts: 506 Member
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    I have lent money in the past to boyfriends ans ALWAYS got burned (in my 20's and early 30's)...so my rule now is...if the bank won't lend you the money and your family won't lend you the money, then neither will I.

    Having said that...if you do decide to help...make sure it will not hurt you financially if they never pay you back...and remember, friendships are ruined over money...if it gets paid late or if you see them buy something when you think they should have given that money to you, etc...good luck!
  • ShellyMacchi
    ShellyMacchi Posts: 975 Member
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    a shame they did not think of taking their tax return to one of those accountants that will 'buy' your return.. basically giving you the majority of your return as a cheque right then and there, no waiting...

    It would have solved their problem.

    i personally would recommend they take the copy of their tax return, and expected refund, to their bank/mortgage holder, and ask for an extension based on the anticipated return cheque.

    Most lenders do NOT want to foreclose and might be willing to work with them with that proof of money coming.

    But i agree with everyone else... never lend money you cannot afford to lose.
  • kabloozi
    kabloozi Posts: 119 Member
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    You're adults. Don't do it. It is already stressing you out and if it is more than $5000, it is too much for a friend. There must be someone else they can count on or try t get the credit themselves. Something may go wrong later. Sorry to say no from me. Good luck!
  • Libby81
    Libby81 Posts: 734 Member
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    However, they've held on to most of the properties.

    What would you do?

    I would politely refuse. This is a HUGE burden to put on a friend. Especially if they have other means of sourcing the money by giving up some of their other properties. These are very tough times we are in right now and who is to say that their tax money comes through in time for you to avoid penalties in repaying the loan. Damage to your credit score could seriously affect YOUR future and that is what yo need to protect. Your friend should understand this
  • Mommawarrior
    Mommawarrior Posts: 897 Member
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    The best advice I have ever received....neither a lender nor a borrower be.

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