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  1. #1
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    Default Be careful being the guarantor for a loan

    A sad story has developed for a friend of my wife. She is a seamstress and a good one at that. Lives a humble life and supports her two children and her husband on what she makes slaving over her sewing machine every day.

    Back in 2012 her husband agreed to be the guarantor to a nephew to the sum of RD400,000. Supposedly this lowlife nephew had no intentions of paying back the loan and is now living a comfortable life in the US.

    Today the bailiffs turned up at the home of the guarantor with official papers from the local fiscal and has given notice that they will repossess everything of value belonging to the entire family. That means, car, sewing machines, tv, stove, i.e. anything that's not bolted down.

    We're trying to do what we can to help, but obviously it's a very distressing situation for all involved. They have four days to sort this mess out.

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  3. #2
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    It's not so easy to be guarantor for 400,000 pesos if you live a humble life. Are you sure you know the whole story?

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  5. #3
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    Quote Originally Posted by beeza View Post
    A sad story has developed for a friend of my wife. She is a seamstress and a good one at that. Lives a humble life and supports her two children and her husband on what she makes slaving over her sewing machine every day.

    Back in 2012 her husband agreed to be the guarantor to a nephew to the sum of RD400,000. Supposedly this lowlife nephew had no intentions of paying back the loan and is now living a comfortable life in the US.

    Today the bailiffs turned up at the home of the guarantor with official papers from the local fiscal and has given notice that they will repossess everything of value belonging to the entire family. That means, car, sewing machines, tv, stove, i.e. anything that's not bolted down.

    We're trying to do what we can to help, but obviously it's a very distressing situation for all involved. They have four days to sort this mess out.
    Maybe try a GoFundMe campaign and see if the fiscal will back off and give it a few months to see if you get sufficient donors to take care of it. Looking over the GoFund Me campaings there are a lot more frivolous that seem to get donors. Onr had a batch of puppies to be spayed and collected several hundred bucks for that.
    Der Fish

  6. #4
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    The same thing happened where we live. Someone we know very well agreed to be guarantor for someone, who used the money not for what he said it was for, but to go to the US. He never came back, and our friend is now repaying the loan.

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  7. #5
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    I'm a bit like Mauricio and ere on the side of caution. Heard these stories from ex esposa all the time when in the campo. Ignored them all because there was an agenda with me being a foreigner and they were playing to (our) supposed sensitivities.

    Maybe in this case it is different but guards up' first and then act with vision.

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  9. #6
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    I suggest the woman hide her sewing machine in someones house until they come back to take everything away.

  10. #7
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    It would be near impossible to get a loan for that amount without collateral here. In fact, in 50 years here, i have never heard of a large loan given to anyone, for any reason, without some form of collateral of equal value. No one here loans money on credit. Someone would have to handed over a land or property title for that amount of money. This is the business my relatives is in here.

    Frank

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  12. #8
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    Quote Originally Posted by frank12 View Post
    It would be near impossible to get a loan for that amount without collateral here. In fact, in 50 years here, i have never heard of a large loan given to anyone, for any reason, without some form of collateral of equal value. No one here loans money on credit. Someone would have to handed over a land or property title for that amount of money. This is the business my relatives is in here.

    Frank
    And very high interest payments. My only caution was a mention of relative, but the more I recall, even a past loan to a tio involved collateral of a large chunk of land and monthly payments. And that was for 100k with 10k monthly interest lawyer backed with land as collateral.

  13. #9
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    Humble by Gringo standards, but middle class by Dominican standards. When the husband signed as the guarantor, he had a good job, money in the bank, credit cards, car payments and a good credit history. Since then he lost his job and the wife is now supporting the family and the husband makes what living he can with their car. But as he's not affiliated with any of the transport unions he has to be very careful about the business he chooses.

    We've offered to hide what we can at our place, especially the sewing machines. But I have not been approached for a bail out, so there is no agenda there. i offered the, help, it wasn't asked for.

    They are seeing what options there are to contact the nephew via legal means in the US. But obviously that's going to cost money.

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  15. #10
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    Don't know about the rest of you, but over my life I have been caught twice with having co signed others' debt and having to pay it out.
    Der Fish

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