- quote -

Perhaps the original poster could lend his brother the $50K for, say, 15
years at 8.5 percent. Assuming the brother keeps up the payments that
would amount to a nice little fixed income investment for the brother
doing the lending. There are all kinds of amortization calculators online
that he could use to determine the amount of each payment that would be
devoted to interest and to principal.

- quote -

More good advice. Also, keep in mind that lending on co-ops is NOT the
same as lending on realty that's owned in "fee simple." That's because
co-op owners own "shares" in the co-op that give them the right to occupy
their units. It's not as simple as recording a lien, because the owner
doesn't "own" the co-op the way he'd own fee simple real estate. (For this
reason, lots of mortgage lenders refuse to loan on co-ops.) So if the
original poster decides to loan his brother the money, he needs to find a
real estate attorney who is familar with *co-op* transactions. The board
at the co-op in question will be able to recommend somebody.

- quote -

Here's a suggestion that might improve the odds the borrowing brother
stays current on the loan. The lending brother could insist on a payroll
deduction to repay the loan via electronic funds transfer. (I would
suggest having a payment deducted from *every* paycheck, regardless of how
frequently the brother is paid.) That way, the loan on the co-op would get
paid before the spendthrift brother got his hands on the paycheck.

Is 8.5 percent a hefty interest rate? You bet. Is it somewhat oppressive
to insist the loan be repaid via weekly/biweekly payroll deduction? Sure.
But with a 550 FICO score the spendthrift brother is not going to find a
lender -- especially one that lends on co-ops. Unless the original poster
loans him the money, I suspect the co-op would have to be sold.

Unregistered <Guest.18puhy[at]isprank.com> wrote in message news:<Guest.18puhy[at]isprank.com> ...
- quote -


I would suggest encouraging your brother to LOWER his standard of
living and try to pocket about $2500-$5000 per year from his DAY job,
then sell out the co-op to him two years from now, or 4 years from now
with a $10k downpayment.

Maybe he could borrow money 4 years from now?

Do YOU want to sell the coop? Do you lose anything waiting 4 years?

well, I don't know much about loan.
here are ' list of loan with easy application and fast approve, no
credit check ' (http://www.premiumcredit.us/) . Maybe you can have a
look. Wish you luck.


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Unregistered wrote:

- quote -

Well, one obvious option is that *you* could carry the note
personally--that means you are the one "betting" your brother will
repay the $50,000 in a timely fashion. Of course, given his past
credit problems, there may be a decent possibility that he won't
make good, but then that's the issue you are having with the lenders
who are worried about the same thing.

If your brother signs a note to you agreeing to pay you the $50,000
plus interest based on a standard amortization over a term you agree
upon, then you don't need to worry about a lender (just collecting
<grin> ). For your protection the note should be drafted by an
attorney and the lien on the property recorded, and you should be
clear with your brother that you are going to treat this as a "real"
loan--he doesn't get to ignore paying you just because he doesn't
feel like it or he'd rather buy a new big screen television.

If he has "turned a new leaf" and his credit history improves, he
may very well be able to refinance this note down the line. Both of
you should be committed to seeing that happen, and that's why it's
doubly important he understand that this note is "real" and not one
he can ignore (otherwise the question becomes why would I convert a
note I don't have to repay into one where I will have to repay <grin> ?).

Otherwise you may have real problems here if *you* want cash today
and so need your brother to find a lender. I presume you've not
found any real options to date, and the credit score has been the
principal reason for this. My understanding is that, today, the
credit score is by far the largest factor in determining
qualification for a loan.

The credit score is impacted most heavily by your brother's history
of timely repaying prior debts--and a low score indicates most often
that there have been major problems there. Lenders have determined
that, statistically, someone who has been a chronic late payor in
the past is likely to be one in the future, and someone who has
"walked away" from debts in the past is likely to do so in the future.

--
Ed Zollars, CPA
Phoenix, Arizona

In article <Guest.18puhy[at]isprank.com> , Unregistered
<Guest.18puhy[at]isprank.com> wrote:

- quote -

How about you lending him the money? All you need to do is set
up a payment plan and have an attorney do the needed paperwork.

Another option that might work is a home equity loan rather than
a mortgage. This might work here since he owns 1/2 of the unit.
If he has some downpayment money, he might qualify if he can keep
the loan to under 80% of the value of the unit.

Otherwise, at a score of 550, any loan that he would get is going to
have a very high interest rate. His only other hope is to get a
co-signer. In general, it is a very poor idea to co-sign for
someone. Finally, any rich relatives in the picture?

Maybe you can carry the loan for 5 years, and let your brother work
on improving his credit. After 5 years, perhaps he can get a
mortgage and pay you off.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

My mother owned a coop and when she died she left it to me and my
brother. He is occupying the coop and wants to buy me out. The problem
is he messed up his credit and his score is about 550. We are having
trouble finding a lender who will give him a mortgage. He also messed
up his bank account, so I don’t know if he can get a loan through a
bank. What other avenues can we look into for him to borrow money and
his credit score will not be considered too much of an issue? He has a
full time job for about 10 yrs making about 40K. He only needs a loan
for 50K.


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Unregistered - Unregistered User
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