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My Ex-Friend Won’t Pay Me What They Owe And I Cosigned

By on September 24, 2014

“Dear Steve,

A friend asked me to use my house for a line of credit for a rental apartment about 7 years ago. I put in $45000, he put in $10000 his boyfriend paid the closing. We stopped talking two years later, but he took care of it and paid the bills. Till last October.

He stopped paying the regime $200 a month, the mortgage $140 a month and I just found out by reading the paper, the property tax $317.56 due on Oct. 4.

He promised me and the regime president (who happens to work upstairs from my job, coincidence) that he would pay the regime. He’s been served papers.

This apartment can be rented out, would cover all costs. but he won’t budge. his boyfriend is useless. He claims not to know anything, they’ve been together 25 years.

Attorneys tell me to buy him out. The apartment is only worth $10-15,000. but I live paycheck to paycheck.

BOA tried to find me a grant program, about ten , all denied. I’m in appeals right now.
any advice would be appreciated?

What can I do? some people say to pay him, others say to walk away. I’d still owe the bank.

Merle”

Dear Merle,

Sadly I have misplaced my magic wand to go back and unwind the horrible financial mistake you made to get involved in this to begin with. My rule is, if anyone ever asks you to go on the hook for a debt, say no and take them out to dinner as a consolation prize.

It sounds to me as if the most logical solution here is to cut your losses and obligations and talk to a local bankruptcy attorney about closing the door on this debt to the bank it sounds like you will never be able to pay. If you’ve got this kind of mess dragging around behind you I can only imagine what else is holding you back from doing better financially.

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Next, you might want to look online and find out what your local small claims court process is and sue the crap out of ex-friend and try to recover some of the cash you put in.

Don’t be financial doormat of this “friend” any more. Start taking action to get the hell out of this mess.

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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