AgentMortgage

Family friend commits real estate faux pas

Never ask to piggyback on another's bank account
Published on Aug 30, 2004

"A family friend wants to buy his first house and has asked me to help by adding his name to my bank account. His broker told him this would help secure a better loan and will pose no risk to me. I would like to help my friend–who I trust to be responsible–but I am less sure of the broker. What would you counsel?" I wouldn't do this for my closest buddy, because it would place our friendship at risk, and requires me to participate in a fraud. I would either gift him the money he needs, or counsel him to wait until he can save it himself. The broker is mistaken when he says that placing your friend's name on your account poses no risk to you. Even though you are certain he is not going to run off with your money, what happens if he doesn't have enough money to close? One of the problems with our mortgage system is that no borrower can be exactly sure what the final tab will be until closing, which is why the lender wants to see that your friend has some extra money availabl...

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