Relative Wants To Borrow Money: Using Camry as Security

B

BillyIdol

Contributing Member
Joined
29 October 2006
Messages
158
Location
Monrovia
She is coming over soon, so I need a quick response. She wants to borrow $2000 to save her house from foreclosure. She says she is going to pay me back in one week. But I'm making her pay $2300 for my trouble. She is leaving her 2007 Camry LE pinkslip with me gifting it to me, and everything will be signed or no dinero. I am going to hold it, and if she doesn't pay me, I sell/repossess the Camry. She owes $11000 on it, and it is worth $19000. She will be driving the Camry during the week. So.......if she doesn't pay. I can go to DMV and register the car in my name, and then pay someone to repossess it, right? Then I will sell it......... I don't want to repossess it, but I have to have my recourse. I trust........but I need a back up plan.

Any advice for me?
Am I missing anything?
With the scenario as I described, what can go wrong?
What will the situation be with taxes (sales)?
How much does it cost to repossess a car?
How should I write up the contract?

I don't want to repossess and sell, but I don't lend money without security anymore. By the way, she is my ex's aunt, may be I should sell it even if she pays me back....no....I'm not evil!!!

Thanks in advance!
John
 
She only has one set of keys. And she will be driving it during the week. Do I need the keys to repossess it? Obviously, having the keys would be beneficial. All I will have is the completed pinkslip with both of our signatures gifting it to me. Is this enough security? Can she get a duplicate pinkslip and try some shenanigans? She can't find the loan documents.


John
 
If a close relative asked for $2000 to save her house, I'd just loan her the money no strings attached.

If the relative wasn't so close, I wouldn't loan the money at all.

It's appalling to me the amount of interest you're charging, and the draconian methods you're planning to ensure payment, all for a measly two grand.
 
If her house is going into forclosure how is she going to pay you back in a week?

Do you really want to do this? Usually lending money to relatives is not the best thing to get involved with. It usually turns our to be a loss for all involved. On the other hand do you want to see her go through forclosure? See, already it's getting very involved. Can you afford to give her the money on a long term basis at a lower interest rate? What are the chances her house will go into forclosure anyway?

Sorry I even started to answer this tread ...:frown:

It all depends on your financial situation as well as her's.

Good luck to both of you. Happy Easter I guess...:confused:
 
Bob,

Point well taken. I guess I didn't include all the work that I did for her trying to fix her Lancer up for sale. This took all a half day on Saturday, and a half day on Sunday, plus me answering phonecalls til 1am. She is not that close of a relative, and she has a history of being bad with money. I guess I'd like to be clear up front about everything. I mean where else is she going to get $2k on an Easter Sunday afternoon. $300 is a bargain, but if she pays me back, I'll return her $300 too!
 
She is getting a readjustment on her loan. Right now, she is at $3400 a month. The readjust will knock off $500 a month. She takes home $3000-4000 a month plus her car payment is $350/month. She had 2 properties. She already lost one to foreclosure. I told her, hey, you can't afford this house ($3400 a month one). What is the diff between losing 1 or 2 houses? House she is in now is worth 393k and the loan is 400k. She is a single mother with 2 children in the house. I told her that her credit is already screwed, so why not just rent something for $1200-1500. I mean, why stress your life out? I think she needs to go back to school to become an RN. It is amazing how some people run their financial lives in total chaos. Me? I've always been good with money. To me, it is just math, observation, and asking questions. I guess you have to be sort of smart to acquire an NSX? Right? Can I get an Amen? Gosh, I'm tired!! I hope she doesn't lose her house, and that she is blessed in everything she does. Did everyone have a good Easter?

John
 
She should do whatever it takes to sell the house to pay off her loans,get out of dept,improve her fico score.Your bandaide will not cure her negative cash flow each month.If she is good people she should work with the bank adjust her spending/start saving and look to get out of a house she can not afford,rent untill she can put 20% down on a house she can afford.
 
You can not repo a car she owes money on to someone else. The 1st lender would get their debt paid and then you would get your paid, as long as you had a lien on file with the DMV. A pink slip in your hand will do you no good. If the car did not sell for more than 11k you would get nothing even with a lien on file.

If she is not immediate family I would not give her a loan. If she was immediate family I would just give her the money and get it back later when she could pay it. From what you describe even if you loan her the money she is going to lose the house anyways.
 
BillyIdol said:
She is getting a readjustment on her loan. Right now, she is at $3400 a month. The readjust will knock off $500 a month. She takes home $3000-4000 a month plus her car payment is $350/month. She had 2 properties. She already lost one to foreclosure. I told her, hey, you can't afford this house ($3400 a month one). What is the diff between losing 1 or 2 houses? House she is in now is worth 393k and the loan is 400k. She is a single mother with 2 children in the house. I told her that her credit is already screwed, so why not just rent something for $1200-1500. I mean, why stress your life out? I think she needs to go back to school to become an RN. It is amazing how some people run their financial lives in total chaos. Me? I've always been good with money. To me, it is just math, observation, and asking questions. I guess you have to be sort of smart to acquire an NSX? Right? Can I get an Amen? Gosh, I'm tired!! I hope she doesn't lose her house, and that she is blessed in everything she does. Did everyone have a good Easter?

John
Click to expand...


So she still can't afford the house after the loan modification. Even you know this. Look at the numbers you posted - how the hell can she pay for 2 kids if her house payment equals her entire income? Now you're going to take her car too if she doesn't pay you back the loan plus 15% weekly juice. Is that how you treat your relatives? On Easter?

If you want to help her get out of this mess, you should help her create a budget and help her find a place to live that she can afford. I'd assume she needs her car more than you need it, but hey, you did go out of your way to help her for a couple afternoons. :rolleyes:

By the way, she is my ex's aunt, may be I should sell it even if she pays me back....no....I'm not evil!!!
Click to expand...

I beg to differ.
 
1st of all - How is a Ex's aunt YOUR relative.

2nd - if you give that money - don't expect it back.:wink:
 
When lending FAMILY money, just plain and simply consider it as complete loss or a gift (IN YOUR MIND). Any repayment can be considered a "wow, cool".

Don't let money tear your family apart over it. It's not worth it, but unless your sister is a deadbeat, you gotta help family if you can afford it.

Dont charge interest. It's your SISTER, not a client.
 
BillyIdol said:
She is getting a readjustment on her loan. Right now, she is at $3400 a month. The readjust will knock off $500 a month. She takes home $3000-4000 a month plus her car payment is $350/month. She had 2 properties. She already lost one to foreclosure. I told her, hey, you can't afford this house ($3400 a month one). What is the diff between losing 1 or 2 houses? House she is in now is worth 393k and the loan is 400k. She is a single mother with 2 children in the house. I told her that her credit is already screwed, so why not just rent something for $1200-1500. I mean, why stress your life out? I think she needs to go back to school to become an RN. It is amazing how some people run their financial lives in total chaos. Me? I've always been good with money. To me, it is just math, observation, and asking questions. I guess you have to be sort of smart to acquire an NSX? Right? Can I get an Amen? Gosh, I'm tired!! I hope she doesn't lose her house, and that she is blessed in everything she does. Did everyone have a good Easter?

John
Click to expand...

this has bad idea written all over it.
 
Do not do it. You would be doing her a favor if you let her house go into foreclosure. She cannot possibly make future payments with her income. No one will refi her. I can guarantee that, especially if she lost her other house. She needs to rent asap and stop payments on her house. It's hard but lots of people are in the same predicament.
 
KooLaid said:
When lending FAMILY money, just plain and simply consider it as complete loss or a gift (IN YOUR MIND). Any repayment can be considered a "wow, cool".

Don't let money tear your family apart over it. It's not worth it,
+1
Click to expand...
Click to expand...
 
Ah, another wonderful example of subprime madness. Sorry to have a lack of compassion but after watching my real estate and investment values plummet because lenders were willing to risk giving mortgages to people who have no ability, and therefore no right, to own a house I just cannot sympathize with your ex's aunt's problems. If she is close to foreclosure, she owes a lot more than one month's payment and your $2000 is a bandaid on a hemorrhage. Keep your money and let her lose the house that she cannot afford anyway. Assuming that her payment does not include real estate taxes, it looks like she has a 9% rate and that causes me to believe she is one of those subprime players who are helping to tank our economy right now. She will never afford this house on her income so don't contribute to the problem by throwing your own money away.
 
Tell her ass to downsize if she has problems making ends meet. That's almost a 500,000 mortgage! I'm sure she can live just fine a 300,000 or 400,000 dollar house. Sell her house, and buy a cheaper one and use the difference to pay off the bills. I can't believe how people can make 4k a month and live paycheck to paycheck.
 
How about taking that 2K and putting down a deposit on an affordable rental for her to move in? That would be helping her.......
<s>Lending</s> giving her 2K is prolonging the inevitable, and that is her losing the house she is in. If she applies for a rental at that point, she most likely will get denied and what then?

Her paying you back in a week? Yeah, watch me pull a rabbit out of my hat.......LMAO!!!
 
steveny said:
Sometimes the right thing to do is not always the nice thing to do.
Click to expand...
+1

speaking from my own life experiences, sometimes letting people bear the pain of their poor decisions & actions is the best way to teach them to choose a more appropriate path the next time.
 
ANYTIME said:
How about taking that 2K and putting down a deposit on an affordable rental for her to move in? That would be helping her.......
<s>Lending</s> giving her 2K is prolonging the inevitable, and that is her losing the house she is in. If she applies for a rental at that point, she most likely will get denied and what then?
Click to expand...


That's really good, sensible advise. Thanks for posting that. :smile:
 
Wouldn't it be best for her if she walked away from the house. She is upside-down right now or she soon will be upside-down. She doesn't earn enough to make that high a payment.
 
Everyone here is right, 2k will NOT fix the problem and your just going to get pissed off and whoknows next month she may need 2k more. The answer is move her ass out and live in something she can affored. She WANTED to have a big ass house she can not pay for just like a bunch of other jackasses now it's time to pay. NEVER DO BUSINESS WITH FRIENDS AND FAMILY!!!!
 

Similar threads

Track Addict
So, I imported my NSX to Japan.
Replies
22
Views
533
Track Addict
Track Addict
91 X
Hello my old friends....been a long time
Replies
4
Views
682
91 X
91 X
THE_YELO
  • Locked
Suspension ***SOLD*** JRZ RS 2-Way Coilovers w/Hyperco Springs & Tops (As New: $3200) - SoCal
Replies
4
Views
482
THE_YELO
THE_YELO
THE_YELO
  • Locked
Intake ***SOLD*** Hard-To-Find Original GRUPPE M Air Intake (As New: $1,000) - SoCal
Replies
4
Views
533
THE_YELO
THE_YELO
M
Up on Jackstands this week - things to inspect while she's in the air?
Replies
3
Views
506
MikeNSX92
M
Back
Top