Gardening Grandma
Senior Associate
Joined: Dec 20, 2010 13:39:46 GMT -5
Posts: 17,962
|
Post by Gardening Grandma on May 6, 2011 9:01:19 GMT -5
This is an update. A couple of months ago I posted that I had decided to break a YM rule about cosigning a loan for a relative.
The short version of the situation is that my son needed to give his ex 1/2 of the equity in their house to settle their divorce. The interest he was being charged was 6%. He tried to refinance, but was turned down (good credit, but not enough income). He asked me to co-sign and I agreed.
I posted on YM, not looking for approval, but looking for input - how to go about it, what to look out for, etc. I got some great suggestions (I knew I would). Bonapp suggested simply loaning him the funds ($65,000) from our taxable investment account. I was reluctant because that money came from DH's inheritance and I felt it was "his" even though he had chosen to put it into our joint account.
Well, I approached DH about it and his response was, "I was going to suggest the same thing".... So that's what we did. Then there was the fiasco when the ex went to deposit the cashier's check from Smith Barney and she wanted immediate access to it.... That finally got settled with a wire transfer and we've heard no more from her since (thank goodness)....
Since then, son has sold his house. Considering the market, he didn't do too badly. The loan saved him about $5K or $6K in interest to his ex. He is now renting a house and looking for a foreclosure/fixer to buy... Yes, he's paid me back.
And - I've transferred our accounts (IRA's and taxable) from Smith Barney to Vanguard, saving us the annual 1.375% "advisor's fee".....
Thank you all again for your support and suggestions.
|
|
muttleynfelix
Junior Associate
Joined: Dec 20, 2010 15:32:52 GMT -5
Posts: 9,406
|
Post by muttleynfelix on May 6, 2011 9:05:27 GMT -5
|
|
alabamagal
Junior Associate
Joined: Dec 23, 2010 11:30:29 GMT -5
Posts: 8,121
|
Post by alabamagal on May 6, 2011 9:15:19 GMT -5
Glad it worked out! I understand the rule of not loaning to relatives, but I think all rules were made to be broken. It looks like this was a case of someone who was in a bind due to bad personal situation (divorce) rather than a continual money trainwreck. Hopefully you son will now be on a better path.
|
|
Deleted
Joined: May 17, 2024 17:47:49 GMT -5
Posts: 0
|
Post by Deleted on May 6, 2011 9:27:16 GMT -5
Glad it worked out! I understand the rule of not loaning to relatives, but I think all rules were made to be broken. It looks like this was a case of someone who was in a bind due to bad personal situation (divorce) rather than a continual money trainwreck. Hopefully you son will now be on a better path. What she said  I am happy to hear that everything turned out great and wishing your son the best. |
|
|
|
Post by illinicheme on May 6, 2011 10:21:48 GMT -5
I'm very glad it worked out. Loaning money to family can be a good solution in the right situations. (My family is also one where loaning money works out well, because no one in my immediate family is a financial trainwreck.)
|
|
Jake 48
Senior Member
keeping the faith
Joined: Dec 20, 2010 16:06:13 GMT -5
Posts: 3,337 
|
Post by Jake 48 on May 6, 2011 10:25:46 GMT -5
Glad it worked out |
|
|
|
Post by gsbrq on May 6, 2011 10:36:24 GMT -5
Glad it worked out. I'd do it for certain relatives in an emergency, but only if I was in a financial position to pay the loan if I had to.
|
|
msgumby
Established Member
Joined: Feb 7, 2011 2:26:23 GMT -5
Posts: 438
|
Post by msgumby on May 6, 2011 12:05:19 GMT -5
It all depends on the situation - you are the only one that knows family dynamics well enough to know if these things will likely go smoothly or not. I loan money to my mother regularily, but I never loan money to my MIL (anything that goes that way is a gift). My mom always pays me back and it has never caused a problem.
|
|
|
|
Post by BeenThere...DoneThat... on May 6, 2011 12:07:46 GMT -5
|
|
❤ mollymouser ❤
Senior Associate
Sarcasm is my Superpower
Crazy Cat Lady
Joined: Dec 18, 2010 16:09:58 GMT -5
Posts: 12,858 
Today's Mood: Gen X ... so I'm sarcastic and annoyed
Location: Central California
Favorite Drink: Diet Mountain Dew
|
Post by ❤ mollymouser ❤ on May 6, 2011 12:14:15 GMT -5
|
|
kindthatjingles
Familiar Member
Joined: Feb 5, 2011 19:06:06 GMT -5
Posts: 622
|
Post by kindthatjingles on May 6, 2011 12:52:02 GMT -5
Kuddos to you for doing what you thought was right. You knew you raised a good kid. Also, I think that was very understanding of the Hubs If I could give him Karma I would  |
|
happyscooter
Senior Member
Joined: Jan 5, 2011 9:04:06 GMT -5
Posts: 2,416
|
Post by happyscooter on May 6, 2011 15:54:55 GMT -5
I would give him more than 'Karma.' |
|
Gardening Grandma
Senior Associate
Joined: Dec 20, 2010 13:39:46 GMT -5
Posts: 17,962
|
Post by Gardening Grandma on May 6, 2011 16:11:28 GMT -5
I would give him more than 'Karma.' Believe me, after reading Doxie's thread, he's getting more than karma!  |
|
t-dog
Senior Member
Joined: Mar 17, 2011 13:46:06 GMT -5
Posts: 2,016
|
Post by t-dog on May 6, 2011 17:02:40 GMT -5
Believe me, after reading Doxie's thread, he's getting more than karma!  Glad it worked out. |
|
Timberwolf
Established Member
Joined: Jan 22, 2011 17:51:35 GMT -5
Posts: 312
|
Post by Timberwolf on May 6, 2011 22:37:15 GMT -5
I'm glad you were able to help your son save so much $$. He's fortunate to have have people in his life who are willing to "break the rules" |
|
Agatha
Familiar Member
Yes, I guess I'm a rather sedate dragon. Fire-breathing only at request or when absolutely necessary
Joined: Dec 20, 2010 22:21:21 GMT -5
Posts: 644
|
Post by Agatha on May 6, 2011 22:43:35 GMT -5
|
|
|
|
Post by debtheaven on May 7, 2011 3:40:59 GMT -5
How great is it to have people we can really count on, and who can really count on us? GG I'm happy (but not surprised) that it all worked out!
|
|
happyscooter
Senior Member
Joined: Jan 5, 2011 9:04:06 GMT -5
Posts: 2,416
|
Post by happyscooter on May 7, 2011 7:04:10 GMT -5
I am sure that we talked about this on another thread, but please tell me that your son signed papers saying the Ex-wife is not entitled to any more money. After she runs through this, she cannot come back for more.
|
|
Gardening Grandma
Senior Associate
Joined: Dec 20, 2010 13:39:46 GMT -5
Posts: 17,962
|
Post by Gardening Grandma on May 7, 2011 9:22:25 GMT -5
I am sure that we talked about this on another thread, but please tell me that your son signed papers saying the Ex-wife is not entitled to any more money. After she runs through this, she cannot come back for more. Yes. She signed away all rights to the house and is not entitled to more. Now that she has money, however, it would not surprise me is she went to court trying to get custody of the kids, but, after two years of living with their dad I don't see her being successful. |
|
