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

13

Replies

  • sharnellgreer
    sharnellgreer Posts: 24
    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
    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
    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
    A loan to a friend must be treated as a gift if you value the friendship.
  • kerricolby
    kerricolby Posts: 232 Member
    The best advice I have ever received....neither a lender nor a borrower be.

    This^^^^ Thank you Polonius
  • Goosiesnougs
    Goosiesnougs Posts: 420
    :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
    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
    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
    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: 1,079 Member
    :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
    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
    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
    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
    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
    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: 1,226 Member
    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: 1,079 Member
    I really hope everything works out for you all.
  • treetop57
    treetop57 Posts: 1,578 Member
    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
    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
    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
  • wapan
    wapan Posts: 219 Member
    It sounds like you want to say no. So do it quickly. The more time you hesitate, the more stress you are giving yourself and them. (My motto is always - if you can't afford to give it, don't lend it.)
  • billgiersberg
    billgiersberg Posts: 163
    This person sounds like a lot more than a good friend. They almost sound like family. I can understand the stress of the situation. Nobody here knows the level of trust between the two of you but if you let a child stay with them like you said the trust must be high. Depending on the trust you have in them, loaning an "almost like family" friend might be safe. That being said, I would never borrow money to lend to anyone except my son and then I'd have to think about it a while. I hope things work out for you...and your friend.
  • grinch031
    grinch031 Posts: 1,679
    This person sounds like a lot more than a good friend. They almost sound like family. I can understand the stress of the situation. Nobody here knows the level of trust between the two of you but if you let a child stay with them like you said the trust must be high. Depending on the trust you have in them, loaning an "almost like family" friend might be safe. That being said, I would never borrow money to lend to anyone except my son and then I'd have to think about it a while. I hope things work out for you...and your friend.

    Except this person has bad credit and is unable to secure a loan themselves. This money will go down the drain for the OP. Don't do it.
  • IpuffyheartHeelsinthegym
    IpuffyheartHeelsinthegym Posts: 5,573 Member
    This person sounds like a lot more than a good friend. They almost sound like family. I can understand the stress of the situation. Nobody here knows the level of trust between the two of you but if you let a child stay with them like you said the trust must be high. Depending on the trust you have in them, loaning an "almost like family" friend might be safe. That being said, I would never borrow money to lend to anyone except my son and then I'd have to think about it a while. I hope things work out for you...and your friend.


    I completely understand the level of friendship/family member, but as you stated, I would be hard pressed to take out a loan to help get their "income producing" property back in good standing, especially if my own family could use it to catch up on bills, etc. Otherwise, if I had it to give, I would do it, for family, or one who is like family.

    This situation has to be a tough one to be in. :frown:
  • KeriA
    KeriA Posts: 3,338 Member
    I definitely agree never loan so much money to a friend that you can't afford to make it a gift. For me this leaves out taking out a loan to pay for that because you obviously can't afford to give them that much or you wouldn't have to take out a loan. I might co sign on a small loan if I really felt they could pay it. $5,000 sounds like it is more than you can handle if finances are tight for you too. It has to be low enough that you can afford to lose it. If you were caught having to pay the loan back on your own how would it affect your relationship? I think it would really hurt it. They would feel bad and you would feel bad. You are honoring your friendship by not putting it in jeopardy. Help them in another way that isn't so risky to the relationship. If they are true friends they will understand and frankly I wonder at them asking this of you at all.
  • Elizabeth_C34
    Elizabeth_C34 Posts: 6,376 Member
    NEVER sign for someone else's loan.... EVER... If they can't get a loan on their own, they are a serious credit risk to you. Don't give in.


    DON'T DO IT.
  • dls1957
    dls1957 Posts: 34 Member
    don't do it.
  • chachita7
    chachita7 Posts: 996 Member
    You have to go with your gut on this... you could draft a contract with her/him
  • becoming_a_new_me
    becoming_a_new_me Posts: 1,860 Member
    Family or friends, regardless...don't do it. In my family none of us will take out a loan for one another because no one wants to be in the position to have a future issue. I have the same rule with my friends...I won't loan you money nor will I cosign. I will be a personal character reference, but that is the most.
  • MikeSEA
    MikeSEA Posts: 1,074 Member
    WWSOD

    What would Suze Orman do? Which is to say, no, I wouldn't.
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