Family wouldn't loan money to me, now they need a loan (wealthy, business)
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Your parents wouldn't spring to get your car out of impound, and as a result you could not get to work and so you lost your job?
I would not lend them a dime. Never mind the Golden Rule coming back to bite them in the behind. If they can't pay their mortgage now, what makes you think they'll be able to pay you back?
Nope, your mother should have sold the business. They made a bad decision. That is far worse than having a tire blow out, something you most likely had no control over.
Yikes..Who knows what their credit rating was yet their financial situations wa back then..However..it appears the OP learned..one must be responsible for their incurred debts or incurred costs...Parent's should never be HELD responsible for their adult child's debts.. If they can afford it great..but no child to assume,demand nor expect that...
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Originally Posted by CSD610
Only give them the money if you do not expect it back except if it were me I would not give it to them directly. Pay the mortgage, utilities or whatever to the creditor directly.
OR
Make it clear it is a one time event that will not happen again and require they put your name on the deed until you are paid back and it stipulates in the will you get paid back first when the home is sold before any proceeds are split between heirs.
First off..just like when I created a contract with MY parents..we created a contract..which I paid in full..BUT small amounts if loans to a friend or family should always done with never see it again mindset..
If these are parent's who likely run across unexpected liabilities for whatever reasons..Just maybe they do NOT have access to liquid money sources..By getting a contract agreement ironed out..regardless of any will or assignments this debt is owed from their ESTATE!
Course..no one addresses..the OP wouldn't be alive today and capable of becoming capable of even loaning such $$ without life lessons...Just maybe..IF anyone deserves what you can offer might be a "Pay it Forward" thought?????
ETA~~ Just noticed..since I am older..that time have changed..back in the day young adults could always look to their parent's as backer's/supporters/co-signers etc..given how economy is today..THAT's no longer the NORM!!
Just because they were not nice to you doesn't mean you have to stoop to that level. Loan them the money and stop worrying about it. There are more fun things to do with your time.
Make certain they will repay the loan. Have something legally binding.
How can he " make certain they will repay the loan"? Will he evict them and sell their house if they dont? Not likely. Will he sue them, win the house and then rent it out to them, evicting them if they dont make rental payments? Not likely.
I agree with those who advised him to give them the money. There's a better-than-even chance that they wont pay it back.
I read all the previous comments. I want to congratulate the OP for being resourceful and successful. I'd consider carefully what the options are, as proposed by the previous posters. 1. Don't lend or give the money; they didn't help you before, and so now you are not obligated; 2. Give them the money outright; 3. Lend them the money and have a contract drawn up by an attorney with a payment schedule; 4. Sit down with the parents and go over their finances so you have clear knowledge of where their money has gone and how they would make payments; 5. Loan or give them several months of payments so they can continue to live in the house.
I don't think you should turn them down flat. They ARE your parents, and you are right to feel wronged by them. So, why would you wrong them? To make a point or get revenge? But, you need to understand your capacity for dealing with this. If you want to worry about whether they will follow the payment schedule, then I think lending with a contract and lien is a viable options. But how will you feel if they start missing payments? Would you evict them? You know them better than I. How will they react in this situation? Will they bad mouth you? Give you grief? And if they default, do you really want the house? Do you really want your family split up and taking sides?
If you give them the money, then you must be willing to surrender to what happens next. And really, can you truly afford to do this? Giving them a substantial sum means that you are giving up possible security in an economy downturn, or layoff situation.
I like the idea of sitting down and finding out what exactly happened and where they went wrong. Your parents should have tax records and other documents that show how they have gotten into this mess. if you skip this step, you are just setting yourself up for disappointment. They will have learned nothing from this experience. I also like giving them enough to get the bank off their backs. This might mean negotiating a payment plan that allows a smaller monthly payout. I hope it would be a substantially less than giving them the entire mortgage balance.
If they own a business, they have plenty of options. That goes twice over if they have equity in the building the business is in. They don't need to ask their kid for money--which also tells me they are asking because they probably would not feel obligated to pay it back, the way they would with a loan from a bank.
I'll be honest: I can't stand people like the OP's parents. Unless the OP was some kind of swindler or con artist, there is really no reason to turn someone down over something as small as getting a car out of impound when the reason they need the car in the first place is to go to work like a responsible, tax-paying citizen. I can't imagine any loving parent being so extreme that they would rather their kid lose a job than spot him or her a few hundred bucks.
Agreed.
The OP's parents have the nerve to ask for much more money than he asked of them.
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