Want to Help - But Can't!

Long story short, I have a friend who’s finishing up college (been working on Master’s Degree for a while now); he has no job and no immediate family, and his financial straits are dire.

The bright spot is that he found a buyer for his house (that he inherited) - but the company providing funds to the buyer is dragging things out interminably, and my friend’s about at the end of his rope.

Not one to let friends get into trouble, I’ve loaned him a bit of money over the past month to help things out, to keep him afloat while the house deal comes about - but I’ve reached my comfort margin on that.

Today, at his realtor’s suggestion, he was apparently at the bank looking into a home equity loan, for $10,000, to tide him over till the deal wraps up. (I wonder if that’s even a good idea on a house about to be sold). Trouble is - he has no job (despite applying for everything short of fast food) and thus no income. He called today to ask if I could co-sign for him…

To those who don’t know, I bought a house earlier this year, and I’ve reached my comfort level in secured debt, too. I want to help him, but I just don’t think I can.

Gah!

Don’t do it is my advice…you’l be responsible for payments if he doesn’t find a job. If he is mad at you for saying no, walk away.

My SO lent one of his best friends a not insignificant amount of money, and he never paid it back. Now he’s out the money AND the friend. Money matters and friends do not mix.

Well, I’m not going to co-sign. I doubt he’ll be mad, but he’ll be all morose and depressive.

Don’t even think about it. You’re essentially guaranteeing repayment of $ 10,000 with no collateral, for someone who has few immediate prospects other than the possible sale of a house. If that falls through or something untoward (legal, structural, environmental etc) is discovered that makes selling the house on a timely basis problematic (and I’m in real estate these things happen all the time) you’re screwed.

You have helped. You’ve been there to listen and be supportive and you’ve even made personal loans, more than many friends could or would do. He’s lucky to have someone like you on his side, don’t beat yourself up for realistic limitations.

I am also on the side of don’t do it. I’ve heard too many stories of stuff like this going downhill, really badly, usually in flames.

Yeah, I just feel bad. Apparently, a credit card payment is the reason for his sudden action, but he actually got a small loan from his realtor (!!) to cover that, for now.