From Yahoo Finance: 2025-05-10 12:24:00

A friend asked for $5,800 to prevent a sheriff sale due to his mortgage arrears, but the house still has his ex-wife’s name on it. MarketWatch advises against loaning money to friends and emphasizes the risks involved, including potential loss and legal complications. About two-thirds of people who lend money never get it back, with an average owed amount of $522. It is suggested to treat loans as gifts to avoid financial and legal troubles. The IRS limits capital losses on bad debts to $3,000 a year and requires proper documentation for loans. Loaning money to friends should be carefully considered to avoid financial strain and potential legal issues.



Read more at Yahoo Finance: My friend wants to borrow $5,800 to save his home from foreclosure. What should I do?