My husband has given over $30,000 to his mother in the past two years to help her avoid foreclosure, and continues to pay her $1300/mo mortgage to this day. She has an active Ch. 13 case to repay (a portion) of the $70,000 of credit card debt she accumulated and was seeking a reverse mortgage until her bankruptcy lawyer told her she'd have to wait until the debt was dismissed - currently scheduled for Fall 2026.
She takes in only $1400/mo in SS and does not want to sell/move.
Elder and RE lawyers we've spoken with suggest a LadyBird Deed (MIL lives in FL); others have suggested trying to put a lien on the property for the amount owed, but I don't think this is allowed in FL because of the Homestead Act. They've also suggested trying to get on the title but said that the mortgage company might not allow it?
My husband and I talked about her switching to Ch 7 (MIL doesn't want to lose personal property); we've talked about paying off her existing 1st (and only) mortgage (60,000) and covering her housing expenses (HOA, taxes, insurance, repairs). Her home is worth about 450,000. Husband doesn't want to lose the house, but we cannot afford to continue to carry both mortgages for two more years - we could potentially pay off her mortgage but that would wipe out our emergency savings and we don't take in enough to cover (ever rising) HOA/taxes/etc.
I think she should try to switch to Ch. 7, get a reverse mortgage (which would included HOA/taxes) (I think the estimate was about 100,000 net); pay us the money she owes us, live off of SS and keep the ~60,000 line of credit for emergencies/medical expenses since she is approaching 80, lives alone, 1000 miles from her son. I worry that she will blow through the line of credit though given her inability to control her spending.
Thank you for any advice you might have.
She takes in only $1400/mo in SS and does not want to sell/move.
Elder and RE lawyers we've spoken with suggest a LadyBird Deed (MIL lives in FL); others have suggested trying to put a lien on the property for the amount owed, but I don't think this is allowed in FL because of the Homestead Act. They've also suggested trying to get on the title but said that the mortgage company might not allow it?
My husband and I talked about her switching to Ch 7 (MIL doesn't want to lose personal property); we've talked about paying off her existing 1st (and only) mortgage (60,000) and covering her housing expenses (HOA, taxes, insurance, repairs). Her home is worth about 450,000. Husband doesn't want to lose the house, but we cannot afford to continue to carry both mortgages for two more years - we could potentially pay off her mortgage but that would wipe out our emergency savings and we don't take in enough to cover (ever rising) HOA/taxes/etc.
I think she should try to switch to Ch. 7, get a reverse mortgage (which would included HOA/taxes) (I think the estimate was about 100,000 net); pay us the money she owes us, live off of SS and keep the ~60,000 line of credit for emergencies/medical expenses since she is approaching 80, lives alone, 1000 miles from her son. I worry that she will blow through the line of credit though given her inability to control her spending.
Thank you for any advice you might have.
Statistics: Posted by Startica — Thu Sep 19, 2024 12:34 pm — Replies 10 — Views 894