Taking out another loan to help family member

[ajax]

Just be careful - borrowing to relatives can very easily ruin the relationship.

 

[^^vampire^^]

Let me do you a favour and get a headstart on opening your new threads for you:

* 3 Months: Bought plot for sister and now she has missed a repayment so I can't pay this month's loan installment - Please Help!

* 1 Year: I'm blacklisted because my stupid sister wanted land which she couldn't afford and I couldn't pay back loan when she stopped paying!!!

* 2 Years: How to remove squatters from plots - legal route is too costly - anyone know 'squatter removers'?

You're welcome

 

[rodga]

60k for 2 plots?
sounds cheap
Id do some research on the area and the ground conditions first
and if you want to help and can, buy it on your name first like everyone else says

 

[Ancalagon]

She is currently under debt review and can not take out a loan.

What makes you think she will pay you back?

 

[zippy]

Not a chance in hell I would make credit in my own name to help someone else's supposed credit problem.

Sounds like an absolute bull**** story anyway.

If she can pay you R5000 a month then why is she under review? And if she is apparently earning so well in Oman why does she care about two plots in South Africa?

And why two plots instead of just one? Surely if you have a credit problem then one would be enough, or better yet none at all.

Sounds like somebody who expects to live a certain lifestyle but doesn't believe they should be funding it.

I feel for people with family like that.

 

[biena]

Let me do you a favour and get a headstart on opening your new threads for you:
* 3 Months: Bought plot for sister and now she has missed a repayment so I can't pay this month's loan installment - Please Help!
* 1 Year: I'm blacklisted because my stupid sister wanted land which she couldn't afford and I couldn't pay back loan when she stopped paying!!!
* 2 Years: How to remove squatters from plots - legal route is too costly - anyone know 'squatter removers'?

* 2 Years 3 months: Please help I now have a landclaim for the squatters living on my plot
* 5 Years : anyone know the the following person XYZ, he is my brother and we lost contact after his wife screwed me over

OP walk away, This whole thing reeks of a scam. BTW where is your brother (assuming you have a brother as you say sister in law in OP)

 

[ponder]

Just be careful - borrowing to relatives can very easily ruin the relationship.

/puts on nazi hat

I lend to you.
You borrow from me.

 

[ponder]

Well what I suggest is buy the plots in your name. Tell the family member when they pay up they can have the deeds.

If you don't do it like that you'll never see the money again.

Land is never a bad thing to have in your name.

Thing is where is that land, will it appreciated to the extent where it quickly surpasses the interest on the bond and any rates the local municipality might levy on it.

Secondly, will that family member still want that land 2 months down the line or would their mind have shifted onto someone else.


Either way I would not lend them the money, period. Also they are already in debt, if the bond is in there name can the property not be seized by the creditors, not sure about the laws on this.

Don't let them make you feel bad by them putting you in this situation. You should feel no guilt/shame etc in simply saying 'no'.

 

[senyetse]

Don't do it. She should be using the money to sort out her bad debts, not trying to make more. Tell her sorry, the risk is just too high...

 

[F1 Fan]

Thank you all for the valuable input. I like the idea of getting the plot in my name. To get back to my original question. Would it effect my credit rating negatively by applying for a home loan now, after already having a personal loan and a vehicle loan? Is it perhaps a good idea to get the home loan now for these plots as it will assist me later on with my own home loan when I want to buy a house in a year or two? And lastly, is it better to get a home loan on the plots rather than just extending my personal loan?

No, it will not affect your credit rating, but the bank will judge you on your liabilities. You will basically have a personal loan, car loan and a bond loan. The bank is definitely not going to want to give you another loan, unless you are earning mega bucks, which you are not.

Food for thought:

1. Is she planning on planning the original amount of R60 000 + interest + rates back?
2. If she hasn't even saved up R60 000, how do you suppose she is going to build the house?
3. A good salary would surely have allowed her to build up savings, which she has not. Therefore she is a reason for debt review?
4. Buying the plot via a bond will incurr initiation fees of R5700 as well as attorney fees of around R15k min (I stand corrected where vacant lots are concerned). These fees will have to be paid now when you buy the place and when you transfer it onto her name.

 

[The_Unbeliever]

I'm sitting with a huge headache and I don't know what to do so I revert myself to this forum.

So my question is should I take the risk in borrowing her the required amount by extending my personal loan and how would it affect my credit rating and how will it influence my rating if I want to buy a house within the next year or two? I know she will be able to give me the money every month but I'm worried about my credit rating in the event I want to take out a home loan. Help!!

No. Just no.

What if she can't repay you? Then you'll be in **** street.

 

[phillyza]

Don't let them make you feel bad by them putting you in this situation. You should feel no guilt/shame etc in simply saying 'no'.

This is good advice, I dont have to feel ashamed by just saying no. Thanks to all for making it clear to me.

 

[Cicero]

No I wouldn't do it. Its extra headache for you if anything goes wrong, and its not like its their house and they're about to lose it or something. Its a piece of land only...and if she decides later down the line she doesn't actually want them? Then you're stuck with these empty plots, and you have to try sell them and make back all the interest you've paid, and transfer/admin fees and get your money back. No way bru.

 

[blunomore]

Good advice from Chevron, but the real Q is can you financially afford to buy them? And if she does not repay you, you sit with that unwanted asset as markface said.

 

[The_Unbeliever]

Where are those plots located? <=== location do matter...

Besides, I wouldn't do that, too many things that can go wrong with this transaction...

 

[Maverick Jester]

Haven't read the entire thread, but:

Worst. Idea. Ever. (Speaking from experience here)

Don't do it OP. The fact that your sister-in-law is under debt review should already worry you...

 

[SauRoNZA]

Whatever you do don't use a Personal Loan to purchase a property.

Get a Property Loan / Bond for that...the interest is different for a very good reason.


I would however clear the Personal Loan long before even contemplating another line of credit.

 

[ToxicBunny]

Like everyone has said, but just to re-enforce it.

Where are the plots, why can't she buy them directly herself if she just saves up a bit, can you afford the loan without negatively impact your current lifestyle, are you prepared to be saddled with 2 plots in this Free State location for which you will probably have no use because your sister WILL default on a loan to you before she defaults on a loan to the bank (and she has already done the latter).

 

[bassplayer]

Dont do it! You will be sorry.

 

[Ancalagon]

OP: Is she your wife's sister, or your brother's wife?