ftlbear
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All of the answers are correct. For $3000, it would be very hard for you to collect if they default. I did do a short term loan for $5,000 once, found a promissary note form online, and required the person's social security number, driver's licence and even had his mortgage information which would have enabled me to put a lien on his home. If it wasn't paid, eventually, he would be unable to sell the home without making good on the loan and all interest accrued. The fact that he gave me all of the information and allowed me to verify it, showed his integrity, and he paid me promptly without any problem. However, we went into the situation very up front with each other. The loan was also to assist in closing a condo quicker and turn it for a profit, so time was of the essence.
If it is family or close friend, they would resent you for attempting to handle it this way.
If they had good credit, and already were good at handling money, they wouldn't need a loan. That is a good indicator of the risk already. Take care. |
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Elaine DeCarmo
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You can write up an agreement and get it notarized. It makes it legal and you don't have to go through lawyers. Check with your local Federal Bldg and where they have Birth certificates and Marriage licenses. If by chance they don't do it there, they will be able to direct you to some one who does. Good luck. |
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Adam B
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Contract law is complicated, but not impossible if you keep it simple.
Sample wording:
"(your name), lends (friend's name) the sum of £3000, in consideration for which (friend's name) will pay (your name) the sum of £3005 on (date due)." Both of you sign and date it in the presence of a notary and get him to affix his seal. |
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Byte
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from personal experience .......
the safest way is ....DONT DO IT
no matter who they are , or how much they promise. |
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willbkool
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there is no 100 percent safe way to lend out money unless you are the govt. the only way to be 100 percent sure of getting paid back is if your wages are garnished because of debt from student loans or to the irs and this is if your the government. id say the best way is to obtain a small loan from the bank that you cosign for say in half amount. if they pay it back then they should have the credit to obtain it from the bank without your help. if time is a constraint. you will have risk involved no matter what, id say go through a bank no matter what. |
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marty92870
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draw up a letter that they agree to pay you back the amount and the day the loan is to be repaid and make sure you put in there that it is a loan... both sign it and mail a copy to your self leave the envelope sealed and keep a copy for yourself. If you can avoid loaning the money that would be the best |
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Peggy K
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Number one.. a loan is a loan and therefore may not be repaid, no matter how many contracts a person signs, nor how many court judgements they get against them.
So if you go into it with this in mind, please don't say you weren't warned ahead of time.
If you're wanting collateral, be absolutely sure you will be able to sell it to be able to get your money out of it. Maybe a lien against some real estate or property with a title, like a car, would be the best source of collateral.
Just remember that cars can be wrecked or stolen, too.
I guess what I'm trying to say is that nothing in this life is guaranteed, and if you are wanting guaranteed payment on a loan like this, you aren't going to get one. If you're not prepared to give this money away, don't lend it. Loans like this make enemies. |
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Franco
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A good contract even if written by you, would be perfectly legal, but:
- How do you know he will pay you back?
- Usually friends and relatives do not pay back. Will you then take him to court?
- And if he says he cannot pay, will you send in the bailiffs?
Better to keep your friend and your money. |
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Me...
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Dont do it... lending someone money is the stupidst thing in the world... make sure you have a contract... definately signed by them, and also get ready to see Judge Judy in person if you follow through with it. If you have a note saying that they will pay you back, signed by them it is perfectly legal. |
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pandapple
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if youre lending money to a friend you have to just see it as giving it to the as a gift, if they pay you back then great, if they dont then it was a gift |
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homemanager22
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you can't do it safely,
any body that loans money has it backed by insurance just in case. it doesn't matter what a person signs - if they don't have the money (say job loss or bankrupcy) then you won't get yours back.
you need to trust the person, even then friends and family will let you down. they will be more likely to pay if you can kick **** |
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mamgu.......
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just don't lend it, lending money to friends and family nearly always ends in disaster. |
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Mr.C83
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You should check this out, it's in yahoo finance section. Very good advice. |
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Hi ^o^
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you should get someone to witness that you lent the person money.Or you can use a video camera or tape recorder to record your friend borrowing your money and keep it in a safe place. |
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Feeling Mutual
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You secure it with property. Where they sign a contract, and create a deed of trust that grants you the property if they default. This goes on file at the county recorder's office as a public record. |
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Mike Sanders
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A private contract without a lawyer checking it, is a bit shaky to say the least...
The question you have to ask yourself is... DO YOU TRUST the person you're lending the money to, if the answer is no, then you have you own answer.
If you do lend money, always keep receipts, get them to sign and print for the original loan, and then to sign and print for each individual payment they make.
Personally, I wouldn't lend many people outside of my immediate family 3k... so as I said, you got to trust the person implicitly... and if so, always keep everything in writing with SET DATES for payment with NO excuses for missing any.
You may find you're asked to wait a week for payment quite often. |
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ashymojo
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If you are sure that the Person will pay the Money back.
Try going to Staples they do DIY legal Documents |
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Mark J
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Not sure if you can, the banks can't manage it. Look how many people on here are declaring bankruptcy. |
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BangkokBob
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If you type up a contract that states your name, their name, the current date and the fact that you are loaning them the $3,000, and you state a plan for repayment, like in 3 months or 6 months or $500 each month for the next 6 months and they sign it, that is a legal document. You can then sue them for breach of contract. |
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largslassie
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An IOU signed and dated. It is also a good idea to state the length of this loan. The IOU should be kept with your other papers so that in the evnt of your death the estate can recover the debt.
You might consider it prudent to consider how you would recover this loan if the person refused to, or couldn't repay it. |
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†l‡ZZý â€
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thats alot of money hmm...not sure on that one |
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