PLEASE HELP!
2007-01-31 12:37:56 · 14 answers · asked by i cant think of a nickname 1 in Business & Finance ➔ Credit
Okay, I read everyone else's answers and I have a couple of comments...I don't think it is fair for everyone who doesn't know you or your dad to automatically assume that he is irresponsible and won't be honest and timely with his payments. I of all people understand that not all bad credit situations have to do with irresponsibility. On that note I would like to suggest to you not to go through with it...not because I don't have faith in your dad, but because your credit is your future. Family or not, if something does go wrong that follows you for a very, very long time. Even if he is in a bad spot financially and is making you feel responsible, as his child, (trust me, I've been there, too) I think that you need to think about your situation reasonably. If you decline the request and he holds it against you, explain that you are looking out for your best interests...if he really cares about you, he'll understand that your future is important and want what's best for you. Maybe you could give him a chance with an apartment or something...if you can afford to cover your *** in the event of a problem, agree to co-sign for an appartment and see how reliable he is with payment. Take gradual steps to improve his credit and take into consideration, down the road, whether or not you should take a step that large. I wish you luck and really hope that all goes well for you. Please, just think it through.
2007-01-31 13:51:57 · answer #1 · answered by simple 4 · 0⤊ 0⤋
There is a reason that he has bad credit, it isn't an accident. Even if life has dealt him a bad hand, his credit is a real problem.
We would need to know a LOT more to judge this, but then it isn't really our place to judge is it. I see disaster written all over this.
If ANYTHING happens, he may very well just stop paying. Are you going to evict him and sell the house? How many payments will be missed during that period that YOU will have to pay for?
It would also not surprise me if this would also involve at least a little bit of fraud. That isn't a given, but often times that is what happens. Will the bank give you the loan if you are not living in the house? Some will not, it is like a rental arrangement.
My guess is that he will make a few payment, perhaps even for a few years and then default, leaving you holding the bag. Even if that doesn't happen, can you risk it?
What if he dies before it is paid off? You would need to get a term life insurance policy on him to protect yourself. Credit life is a rip off, but you couldn't even get that if the mortgage is only in your name.
You also need him to have adequate insurance to protect you. Actually, YOU have to get the insurance because you are the owner. He HAS to get renter's insurance.
How much down payment does he have. Almost nothing? Yeah, I thought so.
Too many possible problems. This is a terrible idea unless you can trust him with your life for the next 30-40 years.
2007-01-31 12:53:35 · answer #2 · answered by DSM Handyman 5 · 0⤊ 0⤋
I know it's hard because this is your father, but that's an awful large responsibility. My mom asked me if she could put some utilities in my name when I was 18 and I (foolishly) let her. She didn't pay them - I had to after I learned they were on my credit report! It took me MONTHS of protesting these to finally have them removed from my credit report.
Honestly, he has bad credit for a reason. If he doesn't pay, they'll come after you and it'll ruin your credit for pretty much the next decade or so. I wouldn't do it. Just tell your dad you love him, but you can't take that chance. Besides, you have to remember (even if he does pay) this will show every time you apply for credit and may end up hurting you in the amounts you can borrow since they'll factor in that payment.
2007-02-01 03:02:57 · answer #3 · answered by reandsmom77 6 · 0⤊ 0⤋
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-consolidation.htm
if it helps kindly remember me in your voting!.. cheers!
2007-02-01 00:55:00 · answer #4 · answered by gabriel jones 4 · 0⤊ 0⤋
If you have a good relationship with your father and you believe he is able to make the monthly payments. Based on his employment and his debt to income ratio. For example he has been at his present job for more than two years, does not have outstanding debts that exceed 38% of his income. If he passes that test and you feel comfortable doing this get a loan in your name only. Have your father make the payments to you each month then you pay the bank note. If your father is questioning this have him sign a lease with option to buy, if he defaults on the lease the money he has paid is yours. It wouldn't be a bad idea to purchase a home that rents easily in-case he does default on the loan.
Good Luck, Pursebabe
2007-01-31 14:42:29 · answer #5 · answered by pursebabe 2 · 0⤊ 0⤋
You should do it if you can. The house will become yours if your dad default, make sure that he pays you not the mortgage company. If he fails to pay you, file suite in court for the house. Make sure that he carries a good home owner insurance on the property and take out a life insurance policy on your father. (also at his expense).
Remember that most people fall into financial problems at the same time that you do. So your father will have a problem at the time that is least convenient for you.
2007-01-31 14:14:25 · answer #6 · answered by whatevit 5 · 0⤊ 0⤋
If you can afford to do it buy the house put it in your name only and rent it to him. Make sure he understands that it is your house and you will throw him out if he cant make rent payments. You get the tax benefits and write offs.
2007-01-31 12:53:05 · answer #7 · answered by GO HILLARY 7 · 0⤊ 0⤋
no if he has bad credit and inadvertly screws you over with missed payments or late payments it will hurt you. I know you want to help your dad but you need to think of yourself
2007-01-31 12:43:55 · answer #8 · answered by iseemen 5 · 1⤊ 0⤋
Most importantly, when you say no, do not let him hold it against you. If he does, it is a guarentee that he would have screwed you over.
2007-01-31 12:46:33 · answer #9 · answered by mattdpickett 2 · 0⤊ 0⤋
Do it only if you want to, if you are ready for it and if it is for you and not him. If he's pressuring you to do it for him, run for the hills!
2007-01-31 12:48:14 · answer #10 · answered by Muga Wa Kabbz 5 · 0⤊ 0⤋