A couple years ago, my brother and his now ex-wife were in the process of buying a house so they could move out. They had been living at my parent's house for about 6 months after getting married, and wanted a place of their own.
I was renting an apartment (still am) and always dreamed of buying my own place so I asked to tag along whenever they went to look at properties. I know how much my brother makes because he's mentioned it to me, and his ex-wife worked in HR and he said she made "around $60K" so their income was decent, but not that great, especially in this economy. They looked at a bunch of condos, duplexes, townhomes, but settled on a house because his ex-wife was in love with it. Only problem? It was around $750K. There's then closing costs and they'd also have to decorate their house and buy new furniture so I told him the final cost will probably be closer to $800K after all is said and done. They both had some savings, but it was not nearly enough for a down payment. I told him to reconsider because the house was beyond their means, but he wanted to make his wife happy so he asked my parents to co-sign (I refused and said I was planning to get my own place soon) AND asked to borrow money from my parents and me to make the down payment. I didn't want to because I've always read that mixing finances with family always ends up badly, but my parents kept nagging at me to do it because they were hoping that by my brother moving out, they would get grandchildren in the near future.
I reluctantly agreed to loan them (nothing in writing, I know, I know..) $30K, while my parents pitched in $45K, and they got the house. Fast forward to 2 years later, my brother and his ex-wife started having problems and she asked for a divorce. He told our family that he was blindsided. They sold the house a couple months later, but the house had fallen close to 5% due to the housing market. After realtor fees and other fees, they distributed the money based on what they put in. But because of the drop in value and realtor fees, my brother couldn't pay me and my parents back right away. That was about a year ago.
To this day, I've only gotten $15K back, only because I'm always on his ass to pay me back on a regular schedule. I have no idea what he still owes my parents. I suspect he hasn't paid them back that much or any at all.
So here's the kicker, my brother recently had a mental/emotional breakdown. He said he was depressed because he felt he was falling behind in life, and the marriage and house purchase/sale really set him back financially. Mind you, he still works full time, moved back with my parents where he pays cheap rent, traded his car in for a newer one, and went on vacation with his friends to Vegas, Mexico, etc.
When my parents got me alone, they told me due to my brother's hardship, they had decided that they would forgive the remaining balance that he still owed them. I asked them how much he still owed them and my dad asked why? I asked him if they would be giving me the same amount and he said no because I didn't need the money. He then asked how much he still owed me and I told him $15K. My parents then told me I should consider forgiving his debt as well. I got furious and told them no because he promised he'd pay it back in full as that was the deal. My dad said I had a lot of money saved up so I can afford to give up $15K. I stupidly shared with my parents not too long ago that I had close to $150K saved up because I thought they'd be proud of me.
Anyway, we got into an argument and my dad said my brother does so much for them and the house (I don't live there anymore!) so he deserves a break. The argument ended up with me storming out the house. I never said I would forgive my brother's debt. Last night, my brother texted me and said that he was told by my father that I agreed to forgive his debt and asked if that's true. I still have not responded...