Should I let my use my name for a 50k loan? - FMVperformance.com : The site for all your Ford Mazda and Volvo needs
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post #1 of 19 (permalink) Old 06-07-2009, 02:01 PM Thread Starter
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Should I let my use my name for a 50k loan?

So yeah I have good credit 700+ last time I checked.
My father wants me to take an equity line of credit for 50k.
I don't want to do this and pretty sure I'll say no.

Is this a bad idea or what? I hate loaning money to family because its always hard to get it back.





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post #2 of 19 (permalink) Old 06-07-2009, 02:07 PM
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Re: Should I let my use my name for a 50k loan?

no! dont do it!
Your name = your loan = you responsible


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post #3 of 19 (permalink) Old 06-07-2009, 02:10 PM
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Re: Should I let my use my name for a 50k loan?

I agree with the above comment. I'd give my family a couple thousand if need be, but I would never put my name on the hook for family members for large sums of money. To be honest, my family wouldn't do the same thing for me either. Money is the quickest way for a family to part ways. I would not pull equity out of your home to help out a family member, because you will most likely get left on the hook to pay the line back.

LMFAO "oh i thought i didn't need that" i bet in your head you were like "go kick your mom in the ass for me when you get home " 08mazda2.0
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post #4 of 19 (permalink) Old 06-07-2009, 02:15 PM
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Re: Should I let my use my name for a 50k loan?

Depends on your relationship with your mother.

If my mother asked me, i'd do it in a heart beat, why? She's my mother.

$50,000 is a cheap price to pay for 18 years of their hard work.

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post #5 of 19 (permalink) Old 06-07-2009, 02:23 PM
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Re: Should I let my use my name for a 50k loan?

what if you dont have the money to pay that loan! you f**ked and there goes down your credit, and the rest of you life. You have to think about this from different views, yes she is your mother but it doesnt mean that you have to be liable for 50K that she needed that much.


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post #6 of 19 (permalink) Old 06-07-2009, 02:25 PM
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Re: Should I let my use my name for a 50k loan?

Just to give you a flip side of things...I've been working for a major bank for almost 5 years now and I can only stress one thing to you. Please by all means, give your decision some very serious thought because if you go through with co-signing the loan or just signing for it yourself then you are just as responsible for the loan as the other party, or solely responsible if it's only in your name. Not only should you think about the money to be repaid but the length of the loan. Do you really want to be stuck in a loan for 4-7 years through thick and thin, when either of you may lose your job, have medical bills come up or God forbid, pass away? The only reason I say these things is because helping someone with a loan, EVEN a family member, is a huge commitment.

Home Equity Lines of Credit have very good interest rates nowadays but even so, at least have the other person co-sign the loan so they are also held equally responsible and think heavily into how this person re-pays other bills that they have. When you help a person with money, if it's a family member or a friend, some people don't feel as compelled or accountable to pay the funds back as opposed to being in debt to a bank where it could potentially hurt their credit. I hope this advice helps


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post #7 of 19 (permalink) Old 06-07-2009, 02:26 PM
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Re: Should I let my use my name for a 50k loan?

+1 great point


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post #8 of 19 (permalink) Old 06-07-2009, 02:37 PM Thread Starter
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Re: Should I let my use my name for a 50k loan?

Yes the loan is for my father. He made some poor investments into real estate and now he is in default of house payments (investment home.) He bought the home for $400k paying interest only. Now the home is probably worth $250k.
His Fico score is probably 600 if not less. So this is why I feel like I can't co sign the loan with him.


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post #9 of 19 (permalink) Old 06-07-2009, 02:48 PM
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Re: Should I let my use my name for a 50k loan?

[quote author=phan95 link=topic=147280.msg3165917#msg3165917 date=1244399832]
Yes the loan is for my father. He made some poor investments into real estate and now he is in default of house payments (investment home.) He bought the home for $400k paying interest only. Now the home is probably worth $250k.
His Fico score is probably 600 if not less. So this is why I feel like I can't co sign the loan with him.
[/quote]

Hate to hear that Phan. From your father's standpoint, it's better for him to just default on the home and let the bank foreclose on it. I work directly with loan officers and our Special Assets Department and there's no point for him to continue paying interest on something that's worth roughly 38% less than what he paid. Your Father would pass away before that value ever came back in the home. His FICO score is already quite poor, so no point in trying to save it. At his age it would be better for him to just let the house go, because once the note was set up to term out; he wouldn't be able to afford the payments. I think your Father stuck his neck out a little too far on this investment house deal.

LMFAO "oh i thought i didn't need that" i bet in your head you were like "go kick your mom in the ass for me when you get home " 08mazda2.0
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post #10 of 19 (permalink) Old 06-07-2009, 02:48 PM
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Re: Should I let my use my name for a 50k loan?

If it was my parents that were asking, and if it was for their actual home I would do it in a heartbeat. But its an investment house, so no I would never do it. We learn from our mistakes and bad investments and I wouldn't help him save an investment home, not like I would if it was their actual home they lived in.
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