Wifes friend wants to borrow some coin
 

Excuse my punctuation as Im using the phone...

A friend of my wife and former co-worker wants $1200 "gifted" to her (has the state form) in order to buy a house. She mentioned in her request, which is in the form of a typed letter, that she would pay us back.

I'd have to re-check the details, but iirc she didn't qualify for a loan becuase of overtime (she's a nurse).

They are good friends but it seems like an odd request.

For some reasom my scam detector is going off. I can provide more details when I go home and re-read the letter.

If you move forward with it, get a legally binding contract before anything else.

Here is the question I have. If it is "gifted", doesn't that mean no repayment is expected? If you present a demand for payment, did you lie on your original form? I think this is a little too much to ask. You are not asking me to spot you $10. So, you basically are going to have to be willing to write off $1200.

She says she will repay you. How do you know she will do what she says? You want a contract? To be upheld by what court?

http://articles.directorym.com/Finding_a_Down_Payment_to_Buy_a_House_Minnesota-r935206-Minnesota.html

Using a Gift to Help With the Down Payment

Family, especially parents and grandparents, will often help with home purchases. As a practical matter, the gift must come from a close family member -- the lender involved in the rest of the deal won't trust that gifts from distant family members or friends are not secret loans.
Borrowing Down Payment Money From a Relative or Friend

Another way to raise money for a down payment is to borrow it from friends and family -- many people prefer to ask their loved ones for a loan rather than a gift. Of course, you must repay the money, and your bank or institutional lender will factor this addition to your debt burden into its own decision on whether to loan you money.


I know what you're thinking. "Will she return the money without issue or not?" Well, to tell you the truth, in all this excitement I kind of lost track myself. But being as this is a $1200 issue, a very big dollar sum, and would blow your wallet and/or checkbook clean open, you've got to ask yourself one question: Do I feel lucky? Well, do ya, punk?

This woman is a hard luck case. Rough background, put herself through nursing school etc. Afaik she's honest, but she knows that we are good for the money too. She stayed at our house 2 yrs ago and at our family retreat in Naples, FL.

Wait a minute, you have a family retreat? My God man, buy the house for her.

She didnt qualify for a loan because she works too much? Seems odd. Anyway, I just basically gifted my sister $1370.00. I do expect her to pay me back, but who knows when that will happen. The thing that sucks about lending money is it never comes back they way it left.

Read my "edit" and see what you think.

Shakespeare once said:

Neither a borrower nor a lender be,
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.

You have bigger stones than I do. I never buy, sell or trade with family.

Borrowing Down Payment Money From a Relative or Friend

Another way to raise money for a down payment is to borrow it from friends and family -- many people prefer to ask their loved ones for a loan rather than a gift. Of course, you must repay the money, and your bank or institutional lender will factor this addition to your debt burden into its own decision on whether to loan you money.

If she has a official loan and not a gift, the bank figures that into the equation. IOW, if you have 5 loans and you default, will I get paid when they sue you?

If you can't afford to just give the money, don't do it.

:D:D:D:D:D
Thanks Clint, er Aklim.

Your valid points I agree with.

1. Be prepared to lose the 1200.
2. Be prepared to lose a good friend of your wife.
3. Forget her veracity with the application. Get a note signed. It may not be worth the paper it's written on as far as collectability, but you can get a judgement against her in court if she renegs. May be of some value.
4. See point 1.

LOL. No kidding.

Though, people should not just ask for hand outs.

It does sound suspicious....no loan because of overtime? That makes no sense.

There's something fishy with her request....

Been there, done that, never saw the money.

Is she's hot looking?:D This thread is worthless without pics of borrower!

If the bank does not think she can repay a $1200 loan, why would you loan it to her? Also if she does not have $1200, she should not be buying a house. When I do buy a house, I will have a sizable down payment that is not borrowed and a good cash reserve.