loans are reallu tough to push through the banks right now. most likely the 1200 is because they want her to pay more points. they will not base her ability to borrow on overtime, most banks never count overtime as it is not a part of the base salary and as such will inevitably disappear leaving the debt ratio too high. also they do look to see if you have some savings left, you should ask this question too as someone posted previously.

to me the most telling part of the story is that this person has worked very hard to better herself and that will bode well in her effort to repay. those type of people are determined to pay their way in life. My guess is it will not be payed in a short time, but will eventually get paid. If its a close friend, and you have the money to give, 1200 doesnt seem like a lot to boost them up in life, and to give your own mental wellbeing a nice boost. if it is just an aquaintance, then it is a lot to ask. either way be prepared to give it to them, and hope that it will be repaid in some timely manner, and expect it to take a long time.

I can live without that money. I know she will pay me back. I lent her money years ago, but never kept track of a total. I cant remember how much, but it was less than a grand. We worked out a deal and she gave me her laptop and I forgave the loans. This time around I wrote a check and can keep track of it. I am happy to do it for her, but I have two other sisters that I would never lend more than I could afford to lose because they are not good for it. They are still young, and I hope they will see that they need to pay their debts. I will not lend money to a friend. I have a broke friend who is worthless when it comes to money. I have another friend who has good intentions, but small income and lots of outgo. When he needs money he usually has to work on my car so he wont have to pay it back and I dont have to do it.

So what does the girl look like? Would it be worthwhile to "take it out in trade" if she cannot pay?

I already asked he said nope:mad: Sooo no deposit on incum!:D

First you asked how "he" looks. Can't be sure about you. Freudian slip? :D

My uncle just delt with a similer situation trying to close one of his spec houses. The bank pulled a real SOB move the day before the closing and told the people to come up with another $10k. They couldn't get a loan since that would impact their credit, it had to either come from themselves or a gift. Either way the bank wanted evidence of where it came from; so my uncle couldn't just write them a check or something.

I suggested that he buy something from them for $10k, like an old car or TV.:D

The attorney's eventualy worked it out, and my uncle just had to reduce the price $3k.

These days the banks are real SOB's about closing houses. While here story sounds suspect, I wouldn't be surprised if they wanted another $1,200 from her for a BS reason. Giving her them money would be a risk on your part, because if she doesn't pay you back since it was a "gift" you can't really do much.

I have a family compound in Hyannisport . . . .

Good, my wife wisely decided against it.

That would be worth the $1200 at $50 a time.

Swede- RRUUUNNNNNNNNNNN. Friends and "loans" don't mix. If you want to GIVE her the money fine but don't expect it back.
LNK
Dear Abbey

The friend called yesterday and wifey told her that she was still thinking about it. She wanted to say no, but hadn't yet formulated her answer.

It will be interesting to see how this friend reacts when she get rj'd - a test of true friendship.

if she'll give you something as security that is worth as much as a loan or a bit more, I'd say go ahead....

That is entirely possible. There are lots of low income, first time buyer FHA type stuff where qualifying incomes are capped. In artist live/work buildings, they are almost always capped, which I found amusing. Once you sell enough art, you get kicked out.









I'm with the others that have said don't loan anything you expect to get back. If you're fine with never seeing the money again, go ahead. That way you only get pleasantly surprised.
As for how to reject, my suggestion would be to say that you don't want to introduce the possibility of akwardness into the friendship.

Why don't you test yourself? Loan her the money.

Friend of mine still owes me $1000 from when his restaurant failed. He's still my friend. I still owe a friend $273 in bail money. He's still my friend too.