She might have done it the same way my friend did it for her granddaughter. She had co-signed a loan for a new car for her granddaughter. Granddaughter could not or did not manage money will, and when her granddaughter could not make the car payments, my friend made payments with the understanding that she would be repaid. Of course didn't happen that way and her granddaughter owed her months of car payments.
Originally Posted by Twilight1
My friend finally got the bank to refinance the loan in her granddaughter's name only, but my friend had to "back" the collateral with a CD that she had, first collateral being the car and my friend's back-up in place since her granddaughter has no credit. Granddaughter is not aware of the back collateral and has for the current time making payments.
Back to OP question. Families suck and lending money to family sucks even more.
- Rep Power
Civic's Rule #1: Never loan money that you can't afford to do without to family members.
Originally Posted by numbers123
Civic's Rule #2: Never rent property to relatives if you need the rent payments to cover the mortgage, maintenance, or property taxes.