$10,000 debt owed

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105lynne

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Ok, 8 years ago I bought the house my husband had been rented for a few years. I didn’t qualify for quite enough for a loan to buy the house, so the owner loaned us the last $10,000 we needed to buy the house. He drew up legal papers and everything, saying that we had to pay him so much every month, and at the end of 7 years, we owed the entire $10,000 to him. This was a balloon loan, unfortunately. Long story short, this loan came due this past October. We have been missing our monthly payments for a while now and we haven’t had any contact with him. Now, he hasn’t said anything to us, but I’m dreading the day he knocks on our door to collect his money. We DO NOT have the money to pay him back. I’m afraid I’m going to be in so much trouble because of this. All of this is in my name only because my husband’s credit was horrible when we got the loan. I just don’t know what we’re gonna do. I’m humiliated that we agreed to do it in the first place and even more humiliated that we don’t have the funds to take care of this. My dream is that he will show up or send a letter saying that he just forgives the debt. But, that is HIGHLY unlikely. Our situation has changed drastically since we took the loan (i.e. three kids and, most recently, a house fire and we had no insurance at the time). sigh
I just want some prayers that this situation works out somehow. Please pray! Thank you!
 
Lord we place this difficulty and the welfare of this family into Your care.
Angels of God please help to resolve this situation with God’s blessing.
 
I’ll remember you and your husband’s predicament and need before the Tabernacle and in my next Mass. God bless and protect you and your family.
 
105lynne said:
Ok, 8 years ago I bought the house my husband had been rented for a few years. I didn’t qualify for quite enough for a loan to buy the house, so the owner loaned us the last $10,000 we needed to buy the house. He drew up legal papers and everything, saying that we had to pay him so much every month, and at the end of 7 years, we owed the entire $10,000 to him. This was a balloon loan, unfortunately. Long story short, this loan came due this past October. We have been missing our monthly payments for a while now and we haven’t had any contact with him. Now, he hasn’t said anything to us, but I’m dreading the day he knocks on our door to collect his money. We DO NOT have the money to pay him back. I’m afraid I’m going to be in so much trouble because of this. All of this is in my name only because my husband’s credit was horrible when we got the loan. I just don’t know what we’re gonna do. I’m humiliated that we agreed to do it in the first place and even more humiliated that we don’t have the funds to take care of this. My dream is that he will show up or send a letter saying that he just forgives the debt. But, that is HIGHLY unlikely. Our situation has changed drastically since we took the loan (i.e. three kids and, most recently, a house fire and we had no insurance at the time). sigh
I just want some prayers that this situation works out somehow. Please pray! Thank you!
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Hi Lynne,

In addition to praying, you should try to find some sort of professional financial counseling. You will need to be careful to go with solid, objective and well-informed advice, but I don’t think you can just sit and stew about a situation like this.

If your financial situation is such that you can’t afford a couple of hours of quality counseling, then maybe there is something free or reduced charge? I would do some research today and see what’s available. Don’t ignore financial problems! And don’t go with anyone who promises an easy fix.

God Bless,
Joan
 
I will be praying for you!!

I know that you did not ask for advice but wanted to suggest maybe calling the loaner and explaining your situation to him. He might appreciate your gesture and find ways to help you out. I have found that it is always better to be up front and honest. If you wait for him to call, he might think you are dishonest and trying to hide from him. I hope my advice does not offend you.

You and your family are in my prayers. Remember to trust in God and He will provide.

Amen.
 
Hi Lynne,

One place to start might be Dave Ramsey’s web site (www.daveramsey.com). I like him because he emphasizes long-term behavioral and attitude changes, which your family doubtlessly would find most helpful. He also offers one-on-one coaching services, which might be necessary if your family is in a financially dangerous situation. Or you might also look in the phone book or on the internet. Watch out for debt consolidation fixes! Use the internet to do independent research on any company that interests you before contacting them; fraudulent companies are often exposed somewhere. Maybe you can find a website dedicated to independent reviews of financial counselors?

I would talk to an objective and knowledable third party before making any financial moves (like contacting the lender). You need to know all your options, and the possible consequences of what you do next. Get the best and most honest advice you can find, and make working towards financial stability your top priority in life until you can be at rest! Then make sure you make up a family budget, and start avoiding new debt and saving every month.

I will pray for you. I hope you find the right solutions very quickly.

God Bless,
Joan
 
I will pray for you. Remember keep up with your tithe. God will take care of your request. Remember Gods answer is in HIS time. I have learned it might not be the solution you wanted but the one God knows is the best for you. He is in control and will protect you. 🙂
 
Hi Lynne,

I have found a website for the National Foundation for Credit Counseling, which as far as I can tell is an established and respectable, not-for-profit group that may be able to get you going in the right direction.

They are emphatic about not letting debt-managment companies take over your financial responsiblities, since some will mess up your situation further and charge outrageous fees to boot.

They (NFCC) also offer solid financial advice about how to get money in order so you are not in this situation again.

They do advise people to contact their creditors, but since you are dealing with a private individual rather than a credit card company, I would speak with a counselor before doing that.

God Bless,
Joan
 
Loving God we place all aspects of this problem into Your loving care and wisdom.
 
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