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Loaning a friend money... What could go wrong?
invite response
2011 Mar 14, 10:56am 22,329 views 77 comments
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77
waiting_for_the_fall
2011 Mar 21, 11:22pm
I think he already gave his (former) friend the money and now regrets it.
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A good friend is trying to refinance his house, but can't qualify because of his unfavorable debt to income ratio. So, his mortgage broker told him that if he can pay off 25K in credit card debt, then he can qualify for the refi, and pull out 25K in equity. His monthly payment will drop from $3k to $2200, so it will be a relief if he can make this happen.
His dad will loan him 15K, so he needs another 10K from me. My concern is that he could pay off the 25K credit card debt, then somehow not get the refi, or not be able to get cash out on the equity.
Is this a ridiculous risk on my part? What other questions I should be asking?
I realize this question begs snarky responses, but please try to keep it to a minimum.
BD
#housing