I don't think I can help you...

[Ghel]

When I got back from break, a couple was waiting for me in the lobby, wanting to apply for a loan. The woman had nasty crooked teeth (at least one of them was missing), but I tried not to let that color my perception of them. Their words were bad enough.

The man spent the whole time in my office with his hands steepled in his crotch, like he was framing his dick for extra attention.

For the most part, only the woman spoke, unless she needed to check with the man to verify something she couldn't remember. She rambled a lot. This is pared down a bit.

SC: We already went to the bank in <nearby town> and <vague statement about how they were turned down>.
SC: My brother's willing to cosign for me, but he lives in North Dakota, so we'd have to do everything by fax.
Me: That's fine, but we would need him to mail the original signed copy back before we could fund the loan.
SC: So we couldn't do anything today?
Me: No.
SC: My mom's boyfriend is also willing to cosign and put his house up as collateral, but I don't like him. Will that let me get more money?
Me: Potentially. We'll have to see.
SC: I'm on disability, and I got my first check, but I don't have a check stub or a letter from them saying how much I get. They owe me, like, $5600, but I don't have anything documenting that, either.
Me: Well, we can look at alternative documentation.
SC: I've got my student loans on my credit. They're going to get rid of them, or whatever you call it. I'm paying them $5 a month until they're gone.
Me: That... should be ok, as long as we can get documentation that they're going to be written off...
SC: I don't have any documentation of it.
Me: That might make things difficult. How much were you wanting to borrow?
SC: Like, $6000 or $7000. And my credit score's like 560.
Me: <internal sigh> Then we're probably not going to be able to do anything for you. If you'd like to fill out an application, I can still look at it...
SC: Even with a cosigner?
Me: Unfortunately, that doesn't help. <starts to explain bank policy>
SC: <interrupting> Never mind. Let's go to the credit union.
Me: <breathes sigh of relief>

[CrazedClerkthe2nd]

$5 a MONTH on Student loans? At that rate they won't be paid off for several THOUSAND years.

[Ghel]

I suspect the $5 a month was one of those bad advice things saying that as long as you pay something, they can't send you to collections. I assume that all her student loans are showing past due on her credit report, but I'll never know for sure.

I've heard about getting student loans "forgiven," but I don't know what the process is for that or how long it takes. In any case, I would have needed documentation of it to consider it with her loan application.

[panamared]

It's nice to know some system abusers eventually run out of room to borrow and will spend the rest of their life begging for toilet scraps from the only idiots left in their life dumb enough to deserve losing their money to them.

[sirwired]

Errr... yeah, having a co-signer, no matter how credit-worthy, does not magically eliminate the requirement that the primary borrower have something that vaguely resembles creditworthiness.

And Mom's boyfriend is going to put his whole house up for collateral in order to secure a puny $6-7k? I'm pretty sure if Mom's Boyfriend had it explained to him exactly what that meant, he'd probably reconsider.

I'm sure this couple was desperate for money, but unless said co-signer was Right There, they aren't getting anything at all done today.

For this pair, it's probably a good thing it is not legal to sign away the right to future Soc. Security payments. (You can do this for military pensions, and it's well known to frequently produce heartbreaking results.)

[taxguykarl]

Whoa...this one makes Betty look like a safe bet. Is this common, Ghel?

[eltf177]

One really has to wonder if boyfriend even KNOWS his house is going to be used for collateral...

[Ghel]

Is this common, Ghel?

Maybe it's just my perception, maybe it's the small-town area, but we seem to have a lot of folks on disability living in the area. And a lot of folks who have no concept of how to manage their finances. These two groups have a huge overlap.

I didn't even get as far as asking what the purpose of the loan would be (what they intended to use the money for). I'm not sure I want to know, now.

One really has to wonder if boyfriend even KNOWS his house is going to be used for collateral...

He would have known long before we funded the loan. But I don't think he would have been ok with paying $500 or more in closing fees for a $7000 loan.


I had another couple come in this afternoon. They wanted a prequalification for a house purchase. Similar income source, similar credit situation. But they had documentation of their income and were happy to take an application to fill out. I still doubt I'll be able to do anything for them, but at least they were coherent and willing to try.

[notalwaysright]

at least they were coherent and willing to try.

Quoted for emphasis. That exact phrase should be the requirements for both employees and customers.

[DGoddessChardonnay]

I had another couple come in this afternoon. They wanted a prequalification for a house purchase. Similar income source, similar credit situation. But they had documentation of their income and were happy to take an application to fill out. I still doubt I'll be able to do anything for them, but at least they were coherent and willing to try.

Bolded for emphasis.

This is key right here: documentation. Even for social security, you will receive a letter stating that you will be receiving benefits and how much per month as well as the effective date of benefits. My mother received one when she first went on Disability, then when she started drawing Social Security (and again when she applied for the divorced spousal benefit off my Dad's Social Security) she received another letter.

And when she took the divorced spousal benefit in lieu of the SSI (aka Disability, as the SSI is need based and the amount of social security plus what she got from Dad put her over the limit for SSI benefits) she received yet another letter. Social Security will letter you to DEATH . . . my Mama has dealt with them since the 60's when she was receiving a death benefit as a teen after her Daddy (my late Grandad) died.

That girl didn't know what she was talking about, plainly put. If she were truly getting disability payments, she'd have letters from Social Security. It sounds to me like she's trying to scam and possibly use her mom's b/f's house as collateral (and legally she has NO rights to the property if her name is not on the deed) and clearly not realizing how the process works. And I think she thinks as long as someone else's name is on the paperwork, she's not responsible.

She's clearly not thinking this through. She doesn't need a loan . . . she needs financial counseling STAT.

[Ironclad Alibi]

And Mom's boyfriend is going to put his whole house up for collateral in order to secure a puny $6-7k? I'm pretty sure if Mom's Boyfriend had it explained to him exactly what that meant, he'd probably reconsider.

Mom's boyfriend doesn't mind since he's living in a rental house.

[workerbee222]

$5 a MONTH on Student loans? At that rate they won't be paid off for several THOUSAND years.

"Shifty" where I used to work got a similar deal. **If** he paid $5 a month for nine months, without being late or missing one single payment, a certain amount would be forgiven.

[MoonCat]

Sounds like the type that is convinced somebody owes them something, despite the said somebody having a completely different point of view. No documentation is a pretty big red flag. That, and the fact that they wanted the money the same day. I've had four loans in my life, and none of them gave me cash in hand the same day I applied.

[Seshat]

There is an overlap between people with disabilities and people who do not understand finances: a part of that overlap is the people whose disability means they are incapable of understanding things as complicated as finances.

But yes, there are also many, many people who are simply not educated about finances - and that overlaps both able-bodied people and disabled people.

[taxguykarl]

He would have known long before we funded the loan. But I don't think he would have been ok with paying $500 or more in closing fees for a $7000 loan.

Hard to say, Ghel. Back when SC & EW magnets (i.e. tax refund loans) were still legal in Illinois, the fees and interest were in that ballpark.