Help refinance debt for local friend
Help refinance debt for local friend
Hi!
I want to help a Khmer friend refinance some debt. Essentially, she owns an apartment that's fully paid off which must be worth at least $50k. However, after a medical emergency in the family, she had to borrow $2k from a local guy in the province to cover hospital bills. After looking at the loan contract, I see that the apartment is collateral for the loan and the interest rate is 5% PER MONTH, translating to 60% per year. Tomorrow, I want to put on a nice shirt and go to the bank with my friend, aim to secure a new loan for $2k at market rates in her name with the apartment as collateral, and then pay off the bad debt. I'd love to hear suggestions on which banks are best for these types of loans, if banks can settle the private credit directly, or if we might need some form of bridge financing. All advice is appreciated
I want to help a Khmer friend refinance some debt. Essentially, she owns an apartment that's fully paid off which must be worth at least $50k. However, after a medical emergency in the family, she had to borrow $2k from a local guy in the province to cover hospital bills. After looking at the loan contract, I see that the apartment is collateral for the loan and the interest rate is 5% PER MONTH, translating to 60% per year. Tomorrow, I want to put on a nice shirt and go to the bank with my friend, aim to secure a new loan for $2k at market rates in her name with the apartment as collateral, and then pay off the bad debt. I'd love to hear suggestions on which banks are best for these types of loans, if banks can settle the private credit directly, or if we might need some form of bridge financing. All advice is appreciated
Re: Help refinance debt for local friend
You will not get the 2k from the bank before the collateral is in the bank's safe. The promise the collateral will be handed in after she paid of the old loan won't do. Someone has to cough up the 2k upfront before you can make the change, unless the current loanshark will come to the bank with you. Since he's in no rush, and in the province, the chances he will make that effort are zero I guess..DagBong wrote: βTue Jul 18, 2023 4:36 pm Hi!
I want to help a Khmer friend refinance some debt. Essentially, she owns an apartment that's fully paid off which must be worth at least $50k. However, after a medical emergency in the family, she had to borrow $2k from a local guy in the province to cover hospital bills. After looking at the loan contract, I see that the apartment is collateral for the loan and the interest rate is 5% PER MONTH, translating to 60% per year. Tomorrow, I want to put on a nice shirt and go to the bank with my friend, aim to secure a new loan for $2k at market rates in her name with the apartment as collateral, and then pay off the bad debt. I'd love to hear suggestions on which banks are best for these types of loans, if banks can settle the private credit directly, or if we might need some form of bridge financing. All advice is appreciated
Re: Help refinance debt for local friend
As the fella above said
You could possibly get a loan at the bank by convincing the guy to come with you and give the title back for $3k, it's less than he would get with the interest but I'm sure he'll take an extra $1k now to end the whole thing
You could possibly get a loan at the bank by convincing the guy to come with you and give the title back for $3k, it's less than he would get with the interest but I'm sure he'll take an extra $1k now to end the whole thing
- phuketrichard
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Re: Help refinance debt for local friend
Best idea is you pay off the shark, get the paper and go to the bank, borrow the $2,000 , (we got a loan from aba 2 years ago at 10 %/year) sister put up her land as collateral
and than she is on her own
and than she is on her own
In a nation run by swine, all pigs are upward-mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely. HST
Re: Help refinance debt for local friend
Oh, I was hoping the bank would provide this bridge financing. So basically no banks in Cambodia will provide this bridge financing, it has to be secured from a privat creditor?Kammekor wrote: βTue Jul 18, 2023 4:55 pmYou will not get the 2k from the bank before the collateral is in the bank's safe. The promise the collateral will be handed in after she paid of the old loan won't do. Someone has to cough up the 2k upfront before you can make the change, unless the current loanshark will come to the bank with you. Since he's in no rush, and in the province, the chances he will make that effort are zero I guess..DagBong wrote: βTue Jul 18, 2023 4:36 pm Hi!
I want to help a Khmer friend refinance some debt. Essentially, she owns an apartment that's fully paid off which must be worth at least $50k. However, after a medical emergency in the family, she had to borrow $2k from a local guy in the province to cover hospital bills. After looking at the loan contract, I see that the apartment is collateral for the loan and the interest rate is 5% PER MONTH, translating to 60% per year. Tomorrow, I want to put on a nice shirt and go to the bank with my friend, aim to secure a new loan for $2k at market rates in her name with the apartment as collateral, and then pay off the bad debt. I'd love to hear suggestions on which banks are best for these types of loans, if banks can settle the private credit directly, or if we might need some form of bridge financing. All advice is appreciated
Re: Help refinance debt for local friend
Giving $1k extra to this guy would really hurt. Having had the loan contract translated, I belive it says that extra down payments are accepted. If I'm right and the guy still refuses to take the $2k and finish the loan, are there any other options than giving him extra cash?
Re: Help refinance debt for local friend
Ok, thanks for the feedback. 10%/year is for sure a lot better than the current 60%phuketrichard wrote: βTue Jul 18, 2023 5:02 pm Best idea is you pay off the shark, get the paper and go to the bank, borrow the $2,000 , (we got a loan from aba 2 years ago at 10 %/year) sister put up her land as collateral
and than she is on her own
Re: Help refinance debt for local friend
In that case get the village chief involved.DagBong wrote: βTue Jul 18, 2023 5:23 pmGiving $1k extra to this guy would really hurt. Having had the loan contract translated, I belive it says that extra down payments are accepted. If I'm right and the guy still refuses to take the $2k and finish the loan, are there any other options than giving him extra cash?
Re: Help refinance debt for local friend
Call me an old cynic, but have you ever seen the receipts for this medical emergency?
- Jerry Atrick
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Re: Help refinance debt for local friend
I'd advise ending your involvement in this woman's financesDagBong wrote: βTue Jul 18, 2023 4:36 pm Hi!
I want to help a Khmer friend refinance some debt. Essentially, she owns an apartment that's fully paid off which must be worth at least $50k. However, after a medical emergency in the family, she had to borrow $2k from a local guy in the province to cover hospital bills. After looking at the loan contract, I see that the apartment is collateral for the loan and the interest rate is 5% PER MONTH, translating to 60% per year. Tomorrow, I want to put on a nice shirt and go to the bank with my friend, aim to secure a new loan for $2k at market rates in her name with the apartment as collateral, and then pay off the bad debt. I'd love to hear suggestions on which banks are best for these types of loans, if banks can settle the private credit directly, or if we might need some form of bridge financing. All advice is appreciated
If she paid off a 50k house she can work out how to pay the money lender also...
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