She doesn't have enough liquidity for her down payment...she has money for the mortgage payments....I've got it, but am afraid of what may happen if she doesn't repay me....
2006-10-17 09:17:51 · 14 answers · asked by Just asking 1 in Business & Finance ➔ Personal Finance
NEVER EVER EVER lend money to family. It only leads to bad things. If you are going to lend her the money, be 100% clear that she understands it is a loan and you are a bank, not her sibling. Then go to a lawyer and have a contract drawn up. Whatever you do, make sure you get it in writing (including total amount, interest, and monthly payments due, and due date) with signatures and at least two witnesses.
2006-10-17 09:26:01 · answer #1 · answered by Goose&Tonic 6 · 0⤊ 0⤋
I don't think it's a good idea. She needs to work with her bank to get the down payment covered (this is possible). Sure, she has the money for the normal mortgage payments, but if she doesn't have the down payment, is she really ready to buy a house?
Getting involved now could lead to further hand outs later if she lands herself into trouble. Just because you have money, it does not make you obligated to give it to family. I mean, if she's starving on the streets, give her a hand, but with this, it sounds like she needs to get herself sorted before she makes any big time comittments.
Don't feel pressured just because it's family. i've seen my dad sink himself deeper and deeper into debt because he's always helping out family. They never pay him back and always come asking for more.
2006-10-17 11:31:59 · answer #2 · answered by Sativa 4 · 0⤊ 0⤋
This I lerned trough the years. Banks are for lending money, family usually just give it away. My family usually ask each other for money and then repay, on the other hand my husbands' are not as polite. They have ask for money several times and they kind of forget so after a couple of ocasions we dont lend it. We just say we cant because they ask for a loan but its more like a gift and Im no Santa Claus. If you want to have a good relationship with your sister either give it to her as a gift or tell her you cant. Good luck
2006-10-17 09:30:22 · answer #3 · answered by xadralix 2 · 0⤊ 0⤋
I've done this, and my suggestion is......if you are ok with the possibility of never getting your funds back, then do it with no strings attached. If you are not ok with it, then lend it to her as if you were a bank, on a written (Note) agreement with scheduled payments, at an agreed interest rate, and most importantly -signed and notarized!!! Another way to look at this is, if she can't afford it she should wait, save like the rest of us, and when she has learned what it is like to work hard for your money then she will appreciate it more! Maybe the best policy is to have a policy never to lend to family. I currently don't talk to my brother because of a loan. It's not that I don't talk to him, he doesn't talk to me. Must be embarrassed from borrowing from his little sis. There are so many ways to get 100% loans nowadays, make sure she's not just milking you cause she know's you have it! You worked hard for it, and please make sure it's not your entire nest egg....what if something were to happen to you!
2006-10-17 09:24:26 · answer #4 · answered by massomia 3 · 1⤊ 0⤋
If she has reserves as you have stated then going 0% down shouldn't be too big of an issue if she has at least decent credit. Typically any money used for a down payment requires at least 3 months of seasoning, or a gift letter. Just some things to keep in mind as you go forward. If you would like to discuss the options privately please feel free to email me
2006-10-17 09:24:03 · answer #5 · answered by J O 3 · 1⤊ 0⤋
Heck no! This is not you and your husband's problem. Your SIL can her husband will just have to suck it up and deal with renting for a while. The only way you should do this is if you and your husband are totally willing to give them the money as a gift, not to be repaid. If that isn't the situation, don't do it. It will at best ruin your relationship with them and at worst you will lose your own home.
2016-03-28 13:14:35 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Thats why you should never lend your family or friends money...ever. I know that means that they are also unlikely to help you in a bind but if you seriously don't trust your sister then she probably wouldn't be there for you in the first place.
2006-10-17 09:23:50 · answer #7 · answered by The Steele's 3 · 2⤊ 0⤋
My wife and I borrow money to reletives in need from time to time. THEN WE FORGET ABOUT IT! Like it never existed. If we get the money back, fine. If we don't, we don't let money stand between us and those we love. Some just can't pay it back but that doesn't affect our love toward them. Lend it and forget it if you can financially afford to.
2006-10-17 09:25:28 · answer #8 · answered by Anonymous · 0⤊ 0⤋
No
Leave the lending risk to the bankers (they know what they are doing and most likely have a real good reason for not feeling she is a good credit risk).
2006-10-17 11:24:44 · answer #9 · answered by derek 4 · 0⤊ 0⤋
I would only ever lend my parents money. Never a sibling or friend. Unless they really needed it.
Tell her to apply here. http://www.ameridream.org/ they give people money for a downpayment towards a house and its money that doesnt have to be paid back.
2006-10-17 09:29:03 · answer #10 · answered by sem3578 2 · 0⤊ 0⤋