Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I agree with the others to not sign but loan him money instead. If anything happens you're just out the money..not liable for 12 months rent on a lease you signed.
Remember there's a reason why someone who is in business and sees applications all the time would require a co-signer. Since this person thinks this relative is not credit worthy, why should you?
Don't do it unless you plan to pay the rent on the apartment. As everyone else has said, if you can afford to give him some money --GIVE-- and expect nothing back, then do that. Otherwise, bow out while you're still talking to this relative.
"Will taking on this kind of commitment adversely affect our ability to secure financing for the new business? Will we be turned down? If not could we receive a not-so-favorable interest rate?"
Why would you ask a loan officer type this kind of question? Aren't the money changers asking for bailouts from their executive offices, eating gourmet stuff and flying in G5's. And using your tax dollars for it that you will never see again. Please think for your selves. It's imperitive for ya'll.
Now next year, you may need a loan to pay your tax bill. What do you think the bank will say to that?
Sometimes apartments will let someone prepay several months of rent if the person is risky. See if you can do that, then you just loan the relative the money. I'm not sure how hard up this person is, but giving them a year's rent seems like overkill.
Location: Georgia, on the Florida line, right above Tallahassee
10,471 posts, read 15,827,481 times
Reputation: 6438
Give them the money, if you like. Give. Don't loan...and for God's sake don't ever expect it back. That'll just make you mad.
Quote:
Originally Posted by Shwa
We currently own a home with a hefty mortgage and are planning to open a business in the coming months. A very close relative who is going through hard times has asked us to sign a one-year apartment lease for him (and he'll begin to pay us back early next year... hopefully) but I'm very concerned about how that will be perceived by lenders (especially during this current economic environment).
Will taking on this kind of commitment adversely affect our ability to secure financing for the new business? Will we be turned down? If not could we receive a not-so-favorable interest rate?
Please help! The realtor wants a deposit tomorrow!! Thanks!
When they pull your credit report to check your credit worthiness, your score will dip as a result of that pull.
If you're "on the line" credit speaking wise, you could have just pushed yourself into a higher interest rate.
We currently own a home with a hefty mortgage and are planning to open a business in the coming months. A very close relative who is going through hard times has asked us to sign a one-year apartment lease for him (and he'll begin to pay us back early next year... hopefully) but I'm very concerned about how that will be perceived by lenders (especially during this current economic environment).
Will taking on this kind of commitment adversely affect our ability to secure financing for the new business? Will we be turned down? If not could we receive a not-so-favorable interest rate?
Please help! The realtor wants a deposit tomorrow!! Thanks!
don't sign. for what it's worth, landlords are going to have to be a little more accommodating in these times. i would suggest that he moves in with you if you have a spare room. give him a much better price. this helps you through this interesting time and he gets half price accommodation. 2 years ago my nephew moved to london and asked me to do the same. he ended up moving in with my wife and i. we have our issues but it's good to have him around and his contribution comes in handy
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Thanks!
