About Kyle Gunter, www.kylegunter.com Expertise Any question about residential real estate.
Questions about Texas promulgated contracts, residential marketing, agent relationships and fiduciary duties. Some Title insurance questions. Ask a way...if i can't answer i will let you know or find out for you. I cannot provide any legal advice, as i am not a attorney. Feel free to give me a call also! I don't mind. Go to my site www.kylegunter.com and call me.
Experience 11 year Realtor. Working with RE/MAX as independant agent. Sell and list over 5 million a year. Live in Dallas now. Born and raised in Arlington.
Organizations Metrotex Association of Realtors, Texas Association of Realtors, National Asssociation of Realtors.
Education/Credentials ABR, Buyer representative. BA communication
Question A friend of mine is having some financial troubles. I'm thinking about lending him a small but (for me) not insignificant amount of money ($10K). I'd want this to be a secured loan, as loans rarely turn out well.
Can this loan be secured by his home? He bought it a few years ago and has 2 mortgages (an 80% and a 10% when he bought).
Thanks in advance for your help. I'd like to be able to help the guy out, but I don't want to lose out. I'm not looking to make any real interest on this..just what I'd make on a CD.
Thanks for any help you can give.
Answer Hollis,
You are a good friend. you could place a 3rd lien on his home. However, you will be third place. If he goes into foreclosure by the 1st lein holder, then you get nothing, unless the home brings in enough money to pay 1st lien plus costs, 2nd lien plus penalties, then you, that is unlikely.
So there wont be any guarantee of repayment. You can have a loan agreement drafted..but you would have to sue him for payment, or a judgement, but if he can pay, then you are still getting nothing.
I would treat it as a gift in my mind...and if he paid me back per our agreement, i would consider it a bonus. It is risky for you to be his bank...if a bank won't lend him money...why should you...just be careful. It could end your friendship. You need to look at his ability to pay you, i would look at all his debts, income and assets.
Most of this is out of my area of expertise...just my opinion...
