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

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  • sharnellgreer
    sharnellgreer Posts: 24
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    i would do it but insist the property be signed over to me until it is repaid that way it is an investment and not a loan hope that helped I know its hard to trust people now days but they sound like a great friend that you would be ashamed if they lost the property quite sure it has a big spot in their heart. God Bless
  • howeclectic
    howeclectic Posts: 121 Member
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    Also... You might just suggest http://www.prosper.com/ . Its peer to peer lending where people get loans (for say 5000 dollars) and others invest (say 50 or 100 increments) in their projects. They have much easier lending standards than a bank and they might be more successful that route.
  • ShandiH
    ShandiH Posts: 232 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.
    Not without a legal, court-defendable agreement that provides the investment property as collateral.

    I find there are several posts that I've read that offer good advice. Both of these ^^^ are really good. Please DO NOT lie about being refused credit . . . best way to save yourself from the situation but also ruin the relationship. Seems you don't want to ruin the relationship so please, please, please don't lie about it.
  • wellbert
    wellbert Posts: 3,924 Member
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    A loan to a friend must be treated as a gift if you value the friendship.
  • kerricolby
    kerricolby Posts: 232 Member
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    The best advice I have ever received....neither a lender nor a borrower be.

    This^^^^ Thank you Polonius
  • Goosiesnougs
    Goosiesnougs Posts: 420
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    :explode:
    Can you tell a white lie and say you got refused credit?

    I think if you can do it this is the way to go. Eeeeeeeeeeeeeeeeeee
  • bcattoes
    bcattoes Posts: 17,299 Member
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    I'd do it as long as it wasn't going to ruin my credit. If they are asking for money and promising to pay it back with income tax, then they should not mind you asking for that in writing. In fact, if they haven't filed yet I'd ask that they have the return auto-deposited to your bank account.

    There are also many places that will make loans based on an income tax return. You could suggest they try one of those.
  • lynheff
    lynheff Posts: 393 Member
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    Depends on how much money. I would not borrow money to lend. It will affect your credit score and could be a real problem if the taxes don't come through. Offer them what you comfortably can. If they are true friends they will realize that they don't want to put you in a bind either. Good luck.
  • bethvandenberg
    bethvandenberg Posts: 1,496 Member
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    I think that you should pray about it. If you're religious at all. Maybe you'll find the peace and the answer that you're looking for. This sounds like an amazing friendship. Good luck.
  • QueenJayJay
    QueenJayJay Posts: 1,139
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    :explode:
    Can you tell a white lie and say you got refused credit?

    I think if you can do it this is the way to go. Eeeeeeeeeeeeeeeeeee

    Yes, lying is always the way to go when dealing with friends. :drinker:
  • bethvandenberg
    bethvandenberg Posts: 1,496 Member
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    Also... You might just suggest http://www.prosper.com/ . Its peer to peer lending where people get loans (for say 5000 dollars) and others invest (say 50 or 100 increments) in their projects. They have much easier lending standards than a bank and they might be more successful that route.

    This sounds worth looking into.
  • MissAlexxMarie
    MissAlexxMarie Posts: 171
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    It's mainly up to you if you trust this person enough to pay you back in the long run. If you have to think twice about it then the answer is probably no. Your friendship does sound great, but sometimes your personal decision is for a reason. Good luck! :drinker:
  • bethvandenberg
    bethvandenberg Posts: 1,496 Member
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    I think that you should pray about it. If you're religious at all. Maybe you'll find the peace and the answer that you're looking for. This sounds like an amazing friendship. Good luck.

    BTW I hate it when my Mom gives me this advice but it does seems she's correct...dang Mom.
  • RESiani
    RESiani Posts: 5 Member
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    if they are in a financial situation like that, what makes you think the irs or a mortgage company wont garnish their tax refund? i wouldnt do it, its way too risky.
  • Sarahmeridith
    Sarahmeridith Posts: 298 Member
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    I worry that the investment property isnt worth saving A) if it clearlly isnt making nough to support itself or B) the family deemed it not worth keeping up on the finacial obligations of the property
  • hedgiie
    hedgiie Posts: 1,245 Member
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    looks like he's a good friend. i think the stressful part is that your also in the same tight situation. but you like to help anyway, so i think this is a matter of good communication. the time is trying for you in which you can only help so much.
  • QueenJayJay
    QueenJayJay Posts: 1,139
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    I really hope everything works out for you all.
  • treetop57
    treetop57 Posts: 1,578 Member
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    The best advice I have ever received....neither a lender nor a borrower be.

    I always think of it to the tune of the Toreador Song since that's what they used in the musical version of Hamlet on Gilligan's Island.

    Neither a borrower nor a lender be.
    Do not forget: Stay out of debt.
    Think twice, and take this good advice from me,
    Guard that old solvency.
    There’s just one other thing you ought to do:
    To thine own self be true.
  • dhencel
    dhencel Posts: 244 Member
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    Even though they are such a good friend, I would get this done legally... That way it is saving them but also protecting you. If the deal goes bad, then you won't have bad credit..Why can't they get a loan??????
  • Sarahmeridith
    Sarahmeridith Posts: 298 Member
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    Also if they know they are getting that kind of money back on their return they should be able to go to a tax place of payday advance place and take a loan out on their return... Hand R block does this and other tax places

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