Relative Wants To Borrow Money: Using Camry as Security
- Thread starter BillyIdol
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I've been a professional loan collector for years now. (There's a difference between a lender and collector - the problem is your "Aunt" met lenders who were NOT collectors - too much of that happened in the USA)
My experience has taught me many things, allow me to share a few:
1) Never make a loan without a clear and visible repayment/takeout/exit strategy - this "loan" fails that test, as did the original mortgage on her house!
2) Never make a Loan (in your mind) that you know you doesn't meet the criteria of #1 - a gift is another story
3) Sometimes the best way to help is to allow someone to hit bottom and then be there for them - it seems that this is the case here - lend her money after she has declared bankruptcy - which she should do right away - that way she can start fresh and your cash will be last months rent plus security deposit on something she can afford
We have an expression for where you're at - we call it "Financing a Black Hole" - there is no amount of cash you can give her to fix her problem - she's venting oxygen into space! THe math you've done doesn't include taxes, income, property, etc. as well as incidentals - using the 30% rule, she should spend no more than 30% of her gross income on Housing payments.
The issue with US lending practices lately has been that all the traditional rules of thumb were thrown out the window to everyone's detriment, the borrower shouldn't have been able to get a loan that they couldn't pay, the lender shouldn't have made a loan they couldn't collect on and the securitization should not have been accepted by anyone since the two basic parties didn't comply with logical norms.
I've seen the actual documents and all I can say is that they were written with a "Bullshit Baffles Brains" approach to ensure that nobody would read and understand what they were really buying - FRAUD in my mind!
My experience has taught me many things, allow me to share a few:
1) Never make a loan without a clear and visible repayment/takeout/exit strategy - this "loan" fails that test, as did the original mortgage on her house!
2) Never make a Loan (in your mind) that you know you doesn't meet the criteria of #1 - a gift is another story
3) Sometimes the best way to help is to allow someone to hit bottom and then be there for them - it seems that this is the case here - lend her money after she has declared bankruptcy - which she should do right away - that way she can start fresh and your cash will be last months rent plus security deposit on something she can afford
We have an expression for where you're at - we call it "Financing a Black Hole" - there is no amount of cash you can give her to fix her problem - she's venting oxygen into space! THe math you've done doesn't include taxes, income, property, etc. as well as incidentals - using the 30% rule, she should spend no more than 30% of her gross income on Housing payments.
The issue with US lending practices lately has been that all the traditional rules of thumb were thrown out the window to everyone's detriment, the borrower shouldn't have been able to get a loan that they couldn't pay, the lender shouldn't have made a loan they couldn't collect on and the securitization should not have been accepted by anyone since the two basic parties didn't comply with logical norms.
I've seen the actual documents and all I can say is that they were written with a "Bullshit Baffles Brains" approach to ensure that nobody would read and understand what they were really buying - FRAUD in my mind!
I've learned my share of lessons that way... HOWEVER... because of the poor choices behind me, and a little bit of inspirational wisdom at the right moments, I learned some years back that I get to choose who I am. That is, I live my life making choices that make me the kind of person I would like to be able to "look up to." And now... I have everything I've ever wanted in life (except for the NSX... still working on that, but already got the wife onboard for buying one eventually).
On the other hand, I don't make loans. I simply give money to those that express a need. My policy is this: If I can live without it, then I'll give it away (in my mind). If that person has promised to pay me back, and does not, then I will never lend to him/her again. Otherwise, I will always take care of anyone in need. When I borrow, I ALWAYS pay back more than I received as my way of "returning the favor" so-to-speak. It also helps in that people are actually eager to lend money to me.
So... if she is humble enough to be teachable she might just be better off learning a lesson.
MY THOUGHTS EXACTLY........
After reading this whole thread I can't believe you are serious - loan the money if you want but please....don't resort to those methods. If you have to resort to that, then obviously there is no trust so don't do it.
My god, I can only imagine if you are doing this over $2k your relationship with the aunt must not be good so best keep that money in your pocket.
Wow *speechless right now
rk
After reading this whole thread I can't believe you are serious - loan the money if you want but please....don't resort to those methods. If you have to resort to that, then obviously there is no trust so don't do it.
My god, I can only imagine if you are doing this over $2k your relationship with the aunt must not be good so best keep that money in your pocket.
Wow *speechless right now
Problem is that its not a loan, can't be in this situation - just like when you hear of people who jump into the water to save a drowning man, generally they both drown since the drowning person forces the swimmer under (I used to certify life guards) - Auntie is drowning, she'll do anything to stay above water - she'll say (believe) etc anything - you'll never get repaid short of her winning the lottery.
At this point its not about trust - it like handing a junkie drugs and trusting them to hold on to them for you and give them back later - ain't happening!
first she'd insult everybody, then complain about something, and then make an irrational decision without hearing the full facts - I liked Wapner better - he was more "real"
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Foreclosures jump 57% in March
http://money.cnn.com/2008/04/15/real_estate/foreclosures_march/index.htm
Fight Foreclosure: Make ‘Em Produce The Note!
http://consumerwarningnetwork.com/2008/04/04/fight-foreclosure-make-em-produce-the-note/
There are two reasons for financial woes
1. Coveting
2. Usery
Billy she needs to rent her rooms outa on craigslist or to friends/family members who she can trust.
There were laws back in the days that made usery illegal. Now its how out finances work unfortunatly. We are seeing why usery is so bad, I guess God knows best:biggrin:
1. Coveting
2. Usery
Billy she needs to rent her rooms outa on craigslist or to friends/family members who she can trust.
There were laws back in the days that made usery illegal. Now its how out finances work unfortunatly. We are seeing why usery is so bad, I guess God knows best:biggrin:
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