Legal Question in Real Estate Law in California

Business debt, refinance


I need some objective advice on a specific matter:

My husband has a mortgage business(7yrs) I have my small business in our home for (5yrs).

He has come to me because his business is in debt and needs $100,000 dollars and needs to refinance the house. I explained in Jan this year I did not want to refinance the house. Today he is out of money for the house payment, car, phone etc.

Should I do this? I have excellent credit.

Sincerely, Robin

Asked on 3/19/06, 3:26 am

3 Answers from Attorneys

Robert F. Cohen Law Office of Robert F. Cohen

Re: Business debt, refinance

Just an addendum to what my colleagues have to say. If you refinance the house, with what would you pay the monthly mortgage? Would the business do any better than it has not with the infusion of cash, or would you be pouring good money down the tubes? A financial planner or CPA should be of great benefit.

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Answered on 3/19/06, 9:35 pm
Carl Starrett Law Offices of Carl H. Starrett II

Re: Business debt, refinance

It would be reckless to give you specific advice with such scant information. There are a number hard questions that you must first answer for yourself and you husband. You should seek the advice of a competent attorney, CPA and business planners.

Your husband's business did not accumulate this $100,000 in debt over night. Can his business become profitable again? Should he even be in business for himself? If you borrow more money against your home, how will you pay it back? How did he did he manage to keep this debt crisis from you?

Refinancing sounds appealing initially, but you need to do some serious self examination before making any decisions. Contact a qualified attorney as soon as possible to start developing a plan of action.

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Answered on 3/19/06, 9:03 am
Michael Olden Law Offices of Michael A. Olden

Re: Business debt, refinance

attorneys are here to give you legal advice. while i am a business lawyer i will not give business or "money" advice to one who i do not know well, do not have all, and i mean all, of the facts and an understanding of the situation. no good experienced attorney will answer your question as it is loaded with problems and potential problems. i would imagine you have an account, buiness associates and i don't even know what you do for a living and how successfull you are and who you have business relationships with with whom you can get diffenet oppinions from and alternative view of the situation from who you can draw your findings --- do so quickly and good luck to you

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Answered on 3/19/06, 11:16 am

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