DagBong wrote: ↑Tue 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

Kammekor wrote: ↑Tue Jul 18, 2023 4:55 pm

DagBong wrote: ↑Tue 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

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..

Darkcel wrote: ↑Tue Jul 18, 2023 4:59 pm 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

phuketrichard wrote: ↑Tue 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

DagBong wrote: ↑Tue Jul 18, 2023 5:23 pm

Darkcel wrote: ↑Tue Jul 18, 2023 4:59 pm 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

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?

DagBong wrote: ↑Tue 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