We have a couple (friends) who asked us to loan them money. They are having a hard time and are going to refinance their home and need someone to help them pay for the appraisal and inspection. They said we have the money within a week. We told them that if we did we would want an aggrement in writing by a notary and we would like to speak to the finance company who will be approving them. Is this a bad idea (loaning the money?) or is it ok to help out people who you feel are good but having hard times? Thank you for your help!
2006-06-12 16:37:51 · 16 answers · asked by florida_sassy 4 in Family & Relationships ➔ Friends
It seems to me the refinance company should be able to work that into the whole deal. Loaning money is best left to those in the business of loaning out money. If you have the money to give away without an expectation of getting it back, then fine. But you don't seem to have the money to give away, or you wouldn't be going to a notary with an agreement, etc, so I would say just pass on the whole thing. Never a lender or borrower be -- that's what my grandma always said. Friends + loaning money = trouble. Good luck.
2006-06-12 16:46:31 · answer #1 · answered by MattEMatt 4 · 2⤊ 0⤋
Just like you said yourself an agreement in writing by a notary, Hubby and I had loan money out, and never paid us back but we dont do that anymore, known the people for years. My experience, I wouldnt do it again. It is good to help people out when they need it, but sometimes not. If you think they will repay you then go ahead, if not then dont. Have some kind of written paperwork
2006-06-12 16:44:18 · answer #2 · answered by ~*Jenny*~ 4 · 0⤊ 0⤋
Actually you can loan them money for the appraisal and closing costs and the finance company can write that into the finance amount but independently issue a check for the reimbursement of those funds.
2006-06-12 16:43:21 · answer #3 · answered by fun_guy_otown 6 · 0⤊ 0⤋
for me this is always difficult. but as a rule I feel that friends should never loan friends money. it strains the relationship. As it usually turns out when they are suppose to pay you back 'something happens' and both parties are feeling uncomfortable.
As it stands now the friendship is now tarnished as you have been asked to borrow money to them. If you say no they will (on some level) be angry with you but if you do and the above paragraph happens you will be angry with them.
I don't want to be a negative naysayer but be prepared for this relationship to move into a decline.
They should have NEVER ASKED YOU.
surgpgsu.
2006-06-12 16:44:32 · answer #4 · answered by surgpgsu 2 · 0⤊ 0⤋
I have helped out friends with money many times.Sometimes I get paid back ,other times I don't. Now I do this,,,,,, Is the money for a really important thing, Can I afford to lose the money (and probably the friendship) if it doesn't get paid back,and how would I feel about myself if I didn't help them. Hope this helps-good luck!!!
2006-06-12 16:51:02 · answer #5 · answered by alienkismet 2 · 0⤊ 0⤋
I hate to think that your relationship with your friends may go sour if something goes wrong. However, if they are willing to do what you say, then I would be willing to go ahead and loan them the money.
Keep in mind that it may be putting the friendship in a difficult position.
The most important thing that comes to my mind is that you and your husband agree on the decision tpgether!!
Don't let this be a way to bring tension between the 2 of you.
2006-06-12 16:47:13 · answer #6 · answered by drgnfly 2 · 0⤊ 0⤋
take it from someone who has helped out more than 1 friend when he/she was "down on their luck"-dont do it no matter how well prepared you are(promissary note,letter by notary,etc) you wont win-you cant get something from nothing-i know how you fell about wanting to help someone in their time of need but trust me-you'll loose in the long run
2006-06-12 16:51:24 · answer #7 · answered by momatendofrope 5 · 0⤊ 0⤋
Don't do it. You will lose money and your friends. If you can't say no then get some collateral to hold till they repay. Make them sign over their car. These things never go according to plan. You gotta cover your @ss.
2006-06-12 17:13:13 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Its good to help the people and friend, if you were on that place where your frineds are in today what you do??? you ask the money with your friends, Help them but make notray letter to bound your friend for return the money. but help them
2006-06-12 16:45:19 · answer #9 · answered by Peter 2 · 0⤊ 0⤋
It is your choice if you wish to take that risk and asking them to comply to some conditions is wise but please remember it does not come with a money back guarantee!
Many friendships and relationships have been lost over money so think carefully.
2006-06-12 16:44:54 · answer #10 · answered by Tom 3 · 0⤊ 0⤋