Hello Wayne
I know your post is a couple of monthes old, but couldn't help putting in my 2 cents worth.
First of all: your intentions are honourable, however if there is one thing in this life that i have learned , it is that money buys you neither friendship nor loyalty !!!!
I would like to live in a million dollar house.. but I can't afford it !
Likewise your friends would like a $ 400K house.
As you said , they have both been through a very messy & expensive divorce, ( I've yet to see a cheap clean one !)
$ 150 K combined income. Yes I can see them at the back of the
Queue at the soup kitchen.
Just a little story........
In October 1997..........
My brother in-law ( and best mate) was in allsorts. He had AGC on the phone,car repayments, bills coming out of his ears and constantly had his head in his hands.
He also worked for me and averaged a $1000. per week as a contractor.
I approached my mother who had money stashed away for a rainy day. With my honourable intentions I helped make that day a downpour. I brokered a deal whereby my mother agreed to pay all debts (both my sister and brother in-law) and would be repaid with interest over a six year period. A win win situation for all.
I even negotiated a $7000.00 bill owed to his accountant who was happy to accept $3500.00 knowing there was no likielihood
of seeing this fellow pay his bill otherwise.
In total $ 43,350.00
1st year: I deducted payments as per our ageement, My mother was receiving interest on her money, the pressure was eased on my brother -inlaw and everyone was happy.
November 1998
My brother in law walked out on his family and on the same day
finished work with me : without notice. To his credit he continued
to make regular payments for the following 2 years.
2000
His idea was that he'd paid half and that was the end of his obligations. Even though his wife was not working and was a single mother and despite the knowledge that If I hadn't helped out he would have been facing bankruptcy.
My mother ended up going to a solicitor , I was present and he told me in no uncertain terms that.......... I was naieve!!
My mother was diagnosed with ovarian cancer, and I even spoke with my former brother inlaw to get him to at least repay the balance of the principle ($13 k) He agreed then renegged.
My mother died (in 2000) with this money being owed to her and two days before her death she said "he's gotton away with it."
I told my mother from the outset that I would guarantee that she would get her money back. I am going wear this $ 13 k and think of it as a cheap lesson .
I'm sure there's hundreds of stories out there where people have
tried to help others only to have a situation come back and bite them on the bum.
As Judge Judy said on one of her shows: NO GOOD DEAD GOES UNPUNISHED !!!!!
So Wayne if you get to the end of this lengthy note, sit back and hope that your'e friend's new marriage is a healthy , happy one,
knowing with such a good income and a little bit of time, patience and savings they will be able to afford their own home and have you around for a beer and a barbie.
meanwhile ... you'll be sitting on another IP waiting for the next rise in the property cycle and making a killing
Jeez I can ramble on.............CHEERS!