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Being a guarantor / Bad credit / Divorce - small update


marzman

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Just another point to note

 

rental leases are usually 6 months with 1 month notice to quit after that

so, if she defaults, you would be liable for up to 6 months and for as long as she decided to stay there after that

 

Plus any prospective landlord would likely after reviewing the credit score insist on that 1st 6 months up front in total

 

Yep should have mentioned i'd talked her down to a 6-month lease initially - but 6 months rent up front? Ouch i've not encountered that before.

 

 

 

yep - 6 months up front - I've just done that with a new tenant - situation is - couple just moving in, his ex-partner ran up credit bills and left them with him - he's paying them off under an agreed payment scheme - but that makes his credit score low

 

I was just going to mention this, you can get around the guarantor requirement by paying 6 months+ upfront. Obviously given the situation you'd have to loan this to her and work out a repayment plan with her, but it would get round you having your name associated to the flat.

 

My old house mate just moved to London and had to pay 6 months rent up front - 1 bed flat in Camden, total required to move in £14k upfront....

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Chris, please don't stand guarantor. It's clear there is a history of not being able to manage her finances, why will this change. Letting them stay with you short term also has its risks as well. Will your address be her new address for the bank and other creditors to contact her? Please, please be careful as this could also affect your own relationship. Phone me anytime mate if you need a chat.

^^ This and pretty much everything everyone else has said so far.

 

My other half's parents let her uncle (mothers brother) move in with them on a temporary basis after he got divorced with the house going to his ex-Mrs/2 kids. 10 f***in' years later he's still living with them!!!! :scare:

They've lost the use of there front room as that's his bedroom now and for years they were still paying for Sky TV whilst he mainly got to use it. I'd chuck him out on the street and so would my Mrs's Dad but unfortunately her mother is too soft (on him) & has the last word on whether her brother stays or not.

 

If you let your wife's sister and her children move in please do yourself the favour of getting her to sign some sort of legal agreement. Something along the lines of that she will be there for no longer than 12 months for example and will have to move out after that time regardless of her situation.

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Just a small addition, maybe she should actually tell him how she feels and split on good terms. She is running the risk of him declaring bankruptcy/leaving the country then she will be liable for 100% of the debt. (sounds like he has lumped most of it on her anyway) Even with bad credit, there are lenders who will still give him money at a high rate, nothing to stop him doing a crazy loan and firing off.

 

This is a minefield your in at the moment, damned if you do and damned if you don't. Just make sure you look after your own interests first, sounds selfish but don't let one failed relationship bugger yours.

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Fair play to you mate- considering doing all this for someone who's not blood related to you, very selfless

 

But as others have said I'd tread very carefully

 

Hope it works out for everyone involved

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I wouldn't take any of that bull, heck, I wouldn't even offer for them to stop over for a few months. But I'm an absolute a hole!

 

Iv been in a similar situation where I allowed an in law to stop at our house for a few weeks, which turned into a few months due to bad judgement on their side. That's not my fault, and that wasn't the agreement. So they were evicted so to speak.

 

I don't talk to them anymore, and I feel calmer and more composed by distancing myself.

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Infidelity? Did he use hotels? If he did and she can see the bookings on his credit card statements, she could call them up and say hi. I can't remember if my husband and I stayed at your hotel on such a such a night. I'm just checking my credit card bill. They'll confirm if it was for one person or two.

 

I know of someone who did this. The hotel said yes and Mr and Mrs x were registered for room x. She knew she wasn't there.

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Both move out and they rent their house out. Okay i'll still need to be a guarantor to achieve this, but I dont want their house to be repossessed affecting both their and potentially our credit.

 

And if they dont manage to rent the house? You might as well buy something yourself and put her in it ....... ;)

 

As for the rest, agree with the masses, youre taking a hell of a risk on someone thats proven themselves to be financially unreliable, its also a bit rough to jet on him without telling him where/that she is going.

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You might as well buy something yourself and put her in it ....... ;)

 

Not a bad plan, investment property, stick her in it with the £600 a month rent as per the previous idea. She's helping you out whilst you help her out. If you have the cash up front to do that obviously!

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Small update on the sitch with the sister in law then...

 

Following the great advice from you guys on here we let her down gently RE being a Guarantor, and also fed back a lot of the other useful tips and observations that were highlighted.

 

Fast forward a few days and she's not listened to a word we've said, she's fell out with my wife and I "because we wouldn't simply sign a piece of paper for her", and she's talked another family member into being a guarantor (a distant Aunt of hers in Scotland). :dry: I've told my wife that we really should call the Aunt to highlight the risks she's taking and the fact that its a move that will probably be worse for her in the long run - but at the moment my wife would rather her sister is cheered up in the short term. :shrug:

 

Im staying out of it now. She's not burnt her bridges with me yet but it's amazing how shortsighted people can be.

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She's Sh!7 the bed, she has to clean it up !

 

(sorry for the ghastly image :lol: )

 

Why the hell should you sort out someone else's mess.

It would be different if someone hadn't had a loan before and didn't have a credit score or what have you.

You did the right thing :thumbs:

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Phew, I'm glad you took the advice onboard and dodged that bullet. You done the right thing for both you and your wife. Sounds like your wife is siding with you. It will all blow over and a weight is off your shoulders. It's a risk you didn't need to take.

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I think you have come out of this as best you could, you offered help where you could. As you say it's family and you want to help out but this could have been a disaster waiting to happen further down the line with much bigger repercussions. I'd keep your head down now.

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Chris I was watching "Can't Pay? We'll take it away" (S5, Ep8) on channel 5 tonight and it reminded me of this thread.

 

A father had gone guarantor for his daughter on a rented house. She stopped paying rent almost immediately and didn't tell anyone she wasn't paying or couldn't, ...fast forward 12 months and a CCJ has now been escalated to a High Court Writ.

 

The High Court Enforcement Officers turned up at the fathers home as he was the guarantor. The debt was now £9000 and the family just didn't have that kind of money or know anyone with it that could or would help. The sh*t daughter didn't even come round and only offered £300 towards the debt. :angry::dry:

 

They ended up taking his "Range Rover Vogue Sport" (his transport) that was the only real thing of any value that the family owned. Unfortunately it only sold at auction for £2990 so he is having to pay the remaining balance through a payment plan.

 

 

I'd rather cut off my own arm than go guarantor for anyone. That's what it'll end up costing you and more if they default on an agreement.

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Well done on dodging that bullet chap, can only imagine that it was a difficult conversation where despite your best interests you still looked the bad guy!

 

Id look at it this way, in a years time one of two things will have happened.

 

1.) She'll have defaulted on paying and still be acting like its someone elses fault, this distant aunt will be jumping up and down wishing she'd perhaps thought it through more and not gotten involved, and you can say I told you so...

 

2.) She wont have defaulted on the rent however I doubt it will have been plain sailing and the aunt will still be stressing over it and wishing she hasn't stuck her neck on the line, and you'll be saying I told you so haha.

 

Either way, you'll be sorted knowing you did the right thing ;)

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I have just read through this thread - IMHO, good advice was given and taken, you seem fairly level headed and have thought this through and tried to do your very best to help, you can lead a horse to water .............................

 

I will say from experince nothing tears family appart like money does or at least the lack of it!! I think you stuck your neck out a long way and went above and beyond in an effort to help!

 

Of course the downside of reading this is that us being human we now all want/need to know what happens - we are all stuck with the first chapter and I was quite happy not being aware you had a SiL now I need to know if they did/didn't get divorced was someone cheating, did she find somewhere to live etc etc, that's the problem when someone tells a story you need to know the ending!

 

But whatever happens I wish you and all your family the very best for the future :thumbs:

Edited by Keyser
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