Never Sign Anything for a Friend

Signed Loans for a Friend · #1 (**permalink**) 04-27-2007, 08:32 AM

Hello,

I made the senseless decision to sign for a $1.5 million dollar home and a luxury car for a former friend of mine in Miami. Long story short, my "friend" has not been forthcoming with making payments on either account. I have now been summoned by Bank of America who is representing Wells Fargo in the foreclosure proceedings and Mercedes has threanted the repossess the car. These mistakes have caused significant damage on my credit report. I am not in any financial standing to make the necessary mortgage or car payments. I am currently working with a broker to try and sell the house and get it out of my name but my concern is trying to get the car. Mercedes has informed me that they may be a possibility to get a cheaper model but my "friend" has also gone over the mile limit as this car is a lease, which I will be liable for that. My other concern is, how can I work on resolving my credit? I had near perfect credit before this mess and going forward, I know that I will encounter difficulties with trying to get bank loans, car loans, renting an apartment etc. Is there a letter that I can write to credit agencies to explain my situation? As it is, I make all of my rent payments on time and I pay off my credit cards each month and I pay them in full. Any advice that anyone can provide would be great.

Extremely embarassed in DC

luvnspnful · #2 (**permalink**) 04-27-2007, 08:41 AM

I have a friend named Vinnie, he's very good with a golf club

. just kidding...........sorry your friend did this, very uncool of him. You might just want to let them repo the car- its absolves you of any further responsiblity. It will hurt your credit tho. You could try having a lawyer send a letter to your friend's employer asking for garnishment to pay the debts ( I could be talking out my bee-hind here so seek proper councel). the embarrassment of that might be enough for him to take responsibility for it and either turn in the car, or make payments again.

hopefully you'll get a more qualified answer. good luck.

DebbieL · #3 (**permalink**) 04-27-2007, 10:45 AM

How could you sign for a $1.5million loan when you are not in any financial standing to deal with the "friend's" non payment? They used to have underwriting rules that prevented these stupid situations. Now all you need is a pulse to get a huge mortgage. Silly.

Truthfully, was this some kind of house-flipping deal between the two of you that went bad (the market turning)? Why else would you co-sign $1.5 million loan? Something here doesn’t add up – you must have thought you were going to benefit in some way from this. Most people wouldn’t sign a paper for that much money without some idea they would gain from it.

PS – I wouldn’t co-sign anything with a friend – EVER. Certainly not $1.5 million. Why does your friend need to live like a millionaire if he’s not?

buzz · #4 (**permalink**) 04-27-2007, 11:59 AM

Ermm...exactly what kind of "friend" was this?

Hot dog · #5 (**permalink**) 04-27-2007, 02:25 PM

Something doesn't sound right with this situationYou might help a friend find a place to stay for the night maybe even a months rent but 1.5 million I don't think so

Fern · #6 (**permalink**) 04-27-2007, 03:00 PM

i doubt you can do anything now, after the fact.

People need to undersand what co-signing on a loan means, and that it is a bonafide contract that you will pay if he doesn't.

Ima saver · #7 (**permalink**) 04-27-2007, 03:57 PM

This is a terrible situation if it is really true. I cannot imagine anyone signing a contract for that much money. Why did you do that??

cschin4 · #8 (**permalink**) 04-27-2007, 04:11 PM

Yes, why did you do that in the first place?

bigsaver · #9 (**permalink**) 04-27-2007, 08:37 PM

This sounds like a joke if anything, 1.5 million?

b4freedom · #10 (**permalink**) 04-27-2007, 10:16 PM

Um, are you the Gov. of NJ and was this your gay boyfriend that you "bought" a house with in order to keep him silent? But now your medical bills from the accident are too large for you to keep up the payments?

I'm just wondering, because this seems to have happened already.

Anyhow, there is nothing you can "really" do short of picking up the payments and taking over the debt. Hopefully you'll learn to not be so stupid.

Actually, you can try and sue him/her in court and have the court order him completely responsible. You can take the judgement to the credit companies and try to get them to honor it. Or you can wait 7 years for it to drop off your reports. Either one will probably take you 7 years to complete.