Financing things for Family members...big mistake.

Sounds to me like he owes you $5500, plus the interest on $5500.

He gave you $7,500, which should be applied to the $13,000. At least that's how I would do it if it were me and my brother.

Of course, I wouldn't have called and exchanged heated words with my brother, so the applicability of my situation really doesn't matter.
 
He did perform a valuable service for you, which makes it easier to "forget" his payments to you for the furniture.
Sounds like a real mess, and a good lesson for the future.
Hopefully, he will pay off the debt as agreed initially.
 
"He also thinks that I owe him this since he did get me into my new house and sold my old one.

His 2nd point is somewhat valid which is why I agreed to finance his furniture to begin with."


Man, that just sounds like a favor that a brother would WANT to do for his brother. And not expect something in return.
 
Your bother in law is a total loser. I love these people who like to throw things in your face like, "Don't worry, Bro. I'll pay it back. It's only $13,000. You know what kind of money I make? I make more than that in a month."

Somehow he is this big shot money making Realtor, but at the same time his credit is ******, he has zero savings, and he's such a poser he needs $13,000 worth of furniture to keep up with the Jones'.

Bottom line though. It's your fault for helping him out in the first place. Is there really a situation where you need $13,000 worth of furniture RIGHT NOW? If one really has the ability to pay for that much furniture within the next 12 months, why not just wait 12 months, save, and pay cash. The fact that he needed a co-signer in the first place should have told you that your likelyhood of ever getting repaid was very slim.

Bernard
 
Agreeing that your wife does in fact need to lose a few pounds.................... Big Mistake.

Just kidding!
 
You could offer this, pay off $7500 off of the loan?

My take: He was using you and knows that you would be sentimental about his favor to you. He may not have consciously though about taking advantage of you, but he did none the less. Your relationship was probably sketchy prior to this.
 
Bernard, you missed the point.

It's the guy's brother, not brother in law. I was just wondering if you had some special, secret intel on the bil that you were just now revealing to the board.
cool.gif
 
So did you just sign for the financing and you are not really out any money right now? Or did you front your brother $13K and make your own agreement with him?

Sounds like you just signed the deal, gave him the furniture and then forwarded him the payment stubs from the retailer.

IF that's the case then bottom line you owe the retailer the money or your credit is ******.

As far as what to do, take care of your business first to save your credit then work something out with your brother on repayment maybe mixing in some discount for the commission. It would be worth it to me to not have anyone (much less my brother) hold something like that over my head every time he needed a favor.

So now the $16K debt is collecting 23% APR every month until it is paid off?
 
Family. Ugh. My brother is batshit crazy and currently in jail. Whaddayagonnado? When my dad died and the meager inheritance was split up (mainly just personal possessions), my brother was totally freaking out about a 1948 panel truck. Now by all rights it was both of ours, 50-50. He wanted to sell it big time, and split the money. But it was and is a thing of beauty, aching to be restored some day. Plus it has sentimental value and my dad's baby. So finally I cornered him and used some Fisher-Ury negotiation ninja skills and got him to cough up why the hell he was acting so nutso about it. I.e. what was his real purpose in it? He really just wanted $2500 to pay his property tax. He didn't want it sold either. So we looked up the blue book value and I bought him out. Sometimes you gotta pull back the bs smokescreen and find out what the real deal is. Sounds like the bro here is irresponsible, sure. But maybe money is tight this past few months, and he just needs a few months to sell his latest investment property and can come up with the dough. Putting aside his impugned manhood, jealousy, and pride... maybe he just needs a little slack and can do a firm commitment to get the money ASAP. If he is in really dire straights, then cut the bill down by the $7500 commission he worked for, and figure out a way for him to pay back the remainder with dignity. Family, you don't pick em, but they sure can screw things up.

But $13k in furniture seems like a lot. Is that what people do? Finance furniture?

We bought our house almost a year ago. Eventually we bought a nice couch and my throne (a recliner). We still have the same bed, same TV, and same kitchen table. We'll upgrade piece by piece. No need to do it all at once. Next up is probably a TV. Then a nice dining table. After that, probably enclose the patio to be mosquito proof. I'd like to pimp out the office, and I have an obsession with murphy beds. But here's the thing... that's probably like 3 years worth of purchases, item by item as we have the cash. Whats the rush?

If I had $13k burning a whole in my pocket for home stuff I'd get hardipanel siding, and know my home's value is materially increased by at least half that, and it will last for decades. Furniture just depreciates.
 
wow, this thing has taken a really bad turn for you EJC+$16k in your brother's debt.

that was a joke and hopefully not below the belt. i really feel for you and think that's pretty unfortunate how it's gone down.
 
I have "loaned" my sister well over $1500 over the past year or so and I know it goes straight to creditors, which is nice because I know it is for legitimate expenses. But I always wonder if her lack of funds in the first place wasn't the result of some spendthrift spree at the salon, mall, etc.

You gotta throw necessity v. discretionary out the window, because - unless the guy is about to be bankrupt - it's all tied together.
 
Look, your brother is a tool for saying what you just posted. Family doesn't renege on it's obligations either.

If you can, can you pay it and then have him pay you back? I really feel bad for you and I would hate to be in your shoes, but it's happened to me with friends, not family (roommates).




But, did you say he sold your house too? And he didn't charge you to handle his new one? So, that could be about ten k there, depending on the dollar amounts, but remember he would've split it with the broker too. So, at most, maybe he hooked you up with 10k? Not really money out of his pocket, literally anyway.
 
Yes...he sold my old house as well at no charge.

Then he gives me his commission on my newly built house which was $7500.

However....Bernard is pretty much spot on with his analysis of the situation.
 
The selling the house for a friend and family I would do for free. While some may say I'm entitled to cash, it's really just my time and efforts I'm donating. I'm technically not out cash. Baking his 7500 (or is it 3750) is a good gesture, but honestly, not really out of his pocket. It's like he skipped a paycheck.

Not denying he did a good deed, but now you are directly affected. I think it goes on your credit pretty quick too. So, start making some payments to protect that.
 
If you're lucky enough to get it back, good for you. If not, just chalk it up to experience and try not to be bitter. I've wasted a lot of time and energy on that.

I had a family friend shake me down for about $80K just because he could. Partly my fault, but....

Never do business with friends or family. It's very true.
 
I could use some new furniture.
Sadly, I do not have any brothers.

Clever nickname, that's exactly what I do. I'd do it piece by piece. 13k of furniture all at once? A crippling int. rate if you don't pay it off in a year? You agree to that type of deal only if there is noway in heck you don't pay it off. Some serious shenanigans going on here by someone. Someone making a move like that should have the cash/credit to do it alone.
 
My wife is a Realtor. She has given up the commission for family a lot of times. There are three reasons-

1. She can do it easily.
2. Family should be easier to work with (conversations can be franker).
3. It's embarrassing to have a family member use a different realtor.

It sounds now like that wasn't a gift after all.
 
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