Family member has revealed to me that he cannot make mortgage payments. He owes a significant amount of money (100K+) on the mortgage and now is recently unemployed. In addition, he owes a $16,000 loan and has $3000 in credit card debt. It's possible he will not be able to return to work as he's now in his mid 60s and has chronic illness (rheumatoid arthritis). I've read all the questions and answers about foreclosure but I'm not sure where whether he will have to foreclose and/or declare personal bankruptcy. The house is currently for sale but no bidders yet and time is running out as he will most likely miss his August mortgage payment. What are his options? When would he have to begin the foreclosure process (before 90 days)? Can he salvage any of the equity in the house (sale price is $235)?
2006-06-11 16:41:28 · 4 answers · asked by janky 2 in Business & Finance ➔ Renting & Real Estate
The house is already priced below market value at $235,000 (market value is $280,000). If mortgage payments cannot be made for August/September - what should be the next step, considering the other debt that he has outstanding (i.e. loan and credit cards)?
2006-06-11 16:51:16 · update #1
My advice would be to price the home below market value and sell it quick. Then take the extra money and pay off the other debts and hopefully have some to live on left over. I wish him and your family well.
2006-06-11 16:46:15 · answer #1 · answered by KWCHAMBER 4 · 0⤊ 0⤋
If you are looking for a way to help. Do two things...
Hire the best realtor in your area, if your current one cannot move the property fire them and find a better one. Tell them the situation, but then tell no one else. People will take advantage of you if they know, a realtor is bound by ethics and will not.
Second, you may want to consider paying a month or two of the mortgage to keep the bank off his case. You can do this with a contract that will be satisfied with the sale of the house.
2006-06-12 16:19:17 · answer #2 · answered by BigDaddy 4 · 0⤊ 0⤋
Have you consider reverse mortgage? I
2006-06-19 11:15:58 · answer #3 · answered by calvin 2 · 0⤊ 0⤋
If you want a correct answer... ask a local bankruptcy attorney!
I would suggest you read the article "New Bankruptcy Law – Where’s The Consumer Protection?" you can view it at:
http://www.sandiegolawyerforyou.com/san-diego-bankruptcy-law-update.htm
http://www.las-vegas-nevada-lawyer-attorney-legal-injury-defense-directory.com/las-vegas-bankruptcy-lawyers.htm
http://www.san-francisco-oakland-bay-area-lawyers-attorneys-directory.com
http://www.san-jose-ca-lawyers-attorneys-directory.com
http://www.sacramento-ca-lawyers-attorneys-directory.com
http://www.la-orange-county-lawyers-attorney-directory.com
http://legal-advice-library.info/blog
http://www.austin-texas-lawyers-attorneys-directory.com/austin-legal-services.htm
http://www.san-antonio-texas-lawyers-attorneys-directory.com
http://www.san-diego-lawyer-attorney-personal-injury-dui-car-immigration.info
2006-06-20 03:05:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋