As the mortgage market melted down this summer and the credit markets became chaotic, the stockbrokers noticed a new evolution. Although they thought that the lenders would reschedule their buyings, they just moved on. The reason of this is that the lenders had found a new way to get a mortgage. It’s not uncommon or new that people lend from their family or their friends, but often it’s associated with family problems and irresolvable arguing. The term that people use for this phenomenon is “circle lending”.
It’s not uncommon or new that people lend from their family or their friends, but often it’s associated with family problems and irresolvable arguing. The term that people use for this phenomenon is “circle lending”.
Personal I wouldn’t even consider this type of lending. Money often creates problems among people. And I don’t think it’s worth “to lose” your family over it. As a matter of fact they should forbid it. Of course you can use the argument that everything can be written down, but we all know that people count on each other. And if you propose that document, people would ask if you do not trust them. Future lenders must also look at the future, what if something happens and they can’t pay back everything, or maybe something happens with your loaners, what to do than?
Els
source:http://www.msnbc.msn.com/id/20834718/
Abonneren op:
Reacties posten (Atom)
2 opmerkingen:
I don't think it is a good idea to lend your family money. Everybody needs his own reserve, because you never know what could happen.
Lets say you lend your sister all of the money you have in reserve. But a month later you become very ill and need to have an expensive operation. It will be impossible to get your money back on time. Or even worse when your sister dies. You won't get your money back anymore.
Kathleen
Lend an amount from family, friends,... is a risky business. There can always arise unexpected problems, by the way: how many families haven't fell apart after heritage decisions. It's hard to prove a judge that you have to recover your money from a family member without a contract.
Jan
Een reactie posten