Taking out another loan to help family member

[blunomore]

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

+ 1

 

[^^vampire^^]

I just figured out who the OP is:

http://i.qkme.me/3tpt89.jpg

 

[Cius]

Avoid debt and get our of your current debt. The property sounds like a terrible idea. I would tell the person that you can't help.

 

[phillyza]

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

Shes my wife's sister.

 

[ProfA]

Lend her the money. She is probably under debt review because of identity theft or something else not of her own doing.

She is family afterall.

 

[Maverick Jester]

Lend her the money. She is probably under debt review because of identity theft or something else not of her own doing.

She is family afterall.

Yeah, worst advice ever...

The problem here is, that whatever agreement he has with his sister-in-law, is between the two of them only. It hampers the OP's ability to take out further credit should he need it later, and should something go awry with the in-law's finances, he will be held accountable for the repayments regardless.

This is a bad idea, despite the good intentions behind it.

 

[ToxicBunny]

Lend her the money. She is probably under debt review because of identity theft or something else not of her own doing.

She is family afterall.

Yeah of course, because all family is only ever under debt-review because of ID theft.... :wtf:

 

[phillyza]

Lend her the money. She is probably under debt review because of identity theft or something else not of her own doing.

Perhaps I should make it clear. She is under debt review because she missed a few of her house payments when the interest rate increased substantially in the past. So she couldnt afford the monthly payment anymore due to this. That was before she got employment in Oman, and thats also the reason she went there for a better income.

Nevertheless I have made up my mind and I will not be helping them. Im not taking the risk.

 

[Mike Hoxbig]

Don't do it. There's always some sad story behind someone who wants to borrow money. That's what banks are for, and they'll pay the bank back a lot faster than they'll pay you. The fact that she's under debt review should already sound the warning bells - she's under it for a reason.

 

[biena]

Perhaps I should make it clear. She is under debt review because she missed a few of her house payments when the interest rate increased substantially in the past. So she couldnt afford the monthly payment anymore due to this. That was before she got employment in Oman, and thats also the reason she went there for a better income.

Nevertheless I have made up my mind and I will not be helping them. Im not taking the risk.

Did she make an effort to negotiate with the bank ? It take more than a few missed payments to be placed under administration.

OP also do not sign as surety for her. That can bite you in the butt in a bad way.

 

[Seriously]

She is going to take that money to pay her debt then he is going under administration as I can lay down a bet here she will never pay him back. She are just using him.

Nevertheless I have made up my mind and I will not be helping them. Im not taking the risk.

There you go. You will never regret it!

 

[The_Unbeliever]

She is going to take that money to pay her debt then he is going under administration as I can lay down a bet here she will never pay him back. She are just using him.

This.

 

[aqua02]

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?

Why do you even need to consider purchasing it? What if she doesn't pay for these plots, do you have any plans for them? Do not make unnecessary debts. Tell her you're already too much in debt and you are trying to manage it better, otherwise the both of you will be in debt review.

Edit: I see you have decided against it, good choice

 

[dudewotevr]

Don't do it. You will regret it. But you know this already.

 

[Hosehead]

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

So long as Cool E and his ilk don't have a claim on it.

 

[ost]

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

Good Choice OP

It must have been difficult saying no, I made the mistake of lending money to family. NEVER EVER AGAIN!!!

5 years later, still not a cent back.

 

[Mortymoose]

Never lend money to a family member, especially one that is under review.... Seen it a million times, they promise the world to get your money and then think that because you are family they can change the payback terms...

 

[Sensorei]

Never lend money to a family member if you expect to it again, and then never lend money to a family member if you expect to see it again. But most importantly never lend money to a family member if you want to see it again.

 

[AfricanTech]

Please don't do it.

Personal experience here

Don't do it.

Tell you wife you really can't afford it - in fact, better than that, tell her what the two of you will have to give up in order for you loan her sister the money.

Nothing destroys a family relationship faster than being owed money.

Unless of course you're willing to write off the 60K.

 

[AfricanTech]

Never lend money to a family member, especially one that is under review.... Seen it a million times, they promise the world to get your money and then think that because you are family they can change the payback terms...

been there, done that, raged, fumed and eventually kicked myself for being dumb enough to fall for it.

Nowadays I just say

"No, sorry, got school fees to pay; do you know how much home maintenance costs; I'm still paying off the debt that XYZ put me into a hole for; the money is in a 12 month fixed investment vehicle; the taxman just audited me)

Do not do it.