My grandmother has aquired debt in total of $10,000.This is mainly due to using credit cards and such to purchase fuel for her home, new oil tank, new furnace and several other necessities over the years.She is currently living on a fixed income of 1200. per month.Right now, creditors are harassing her left and right and she is struggling to pay the bills.I help, but I am not rich.There is only so much I can do. She is overwhelmed and the taxes are due on the house in January. I went to LendingTree.Com. and came up with a Home Equity Loan from Champion Mortgage.How safe is this?Is this the right thing for her?Any other options? They charged her to assess her home. Are their closing costs that must be paid before she receives money? Even if she doesn't get approved? I would hate to see her lose her home. Please help!
2006-12-09 17:37:27 · 7 answers · asked by laracroft79 1 in Business & Finance ➔ Renting & Real Estate
Look up Reverse Mortgages. If your grandma's house is not worth a lot, this might be an option for her. Basically what it does a Reverse Mortgage does is sell your grandma's house, to the bank, but she gets the money now, before she dies and gets to live the rest of her life in her house.
My dad did this and thank god he did. Just do some intense research to make sure the company is legit and that they offer her a good deal.
Good luck.
2006-12-09 17:42:36 · answer #1 · answered by Gem 7 · 0⤊ 0⤋
From the sounds of it, you are thinking a home equity loan to cover the 10,000 of expenses. Prior to closing with Champion Mortgage, please be sure to shop around. The questions you are asking such as "Are their closing costs that must be paid before she receives money? Even if she doesn't get approved?" should all be directed to Champion Mortgage/Lending Tree and the others you contact to compare rates.
Will she have money left over in her fixed income to make this additional payment each month?
2006-12-09 17:43:40 · answer #2 · answered by illinois_girl_1973 3 · 0⤊ 0⤋
If she is in jeopardy of losing her home, I would say that an equity loan would be a good option. There are also reverse mortgage loans for older people. I am not quite sure how they work, so I will not offer any recommendations on them. Check the web and see what you find out.
She may have to pay a loan origination fee to start the loan process, but closing costs are not charged unless the loan closes (approved and completed).
Bless your heart for helping your grandma through all of this.
2006-12-09 17:43:13 · answer #3 · answered by maamu 6 · 0⤊ 0⤋
Don't do it. At her income, the risk of her loosing the house is to great. Listen to the Dave Ramsey Show at the link below.
Yes, he does also sell a book "The Total Money Makeover" which has made best seller lists. Either give it to her for Christmas or have her check it out of the local library.
2006-12-09 17:41:55 · answer #4 · answered by Jeff H 5 · 0⤊ 0⤋
I agree with Gem, look into a Reverse Mortgage!!! If there's equity, she can can receive some cash up front AND receive income on a monthly basis fromt he equity of the home!
I would seriously look into that first!
2006-12-09 19:30:20 · answer #5 · answered by ALEGNA 3 · 0⤊ 0⤋
dont do a second mortgage like that. If you dont pay on time they take your house. the best thing to do is file chapter 13 bankruptcy. this is not the normal bankruptcy you may be thinking of. all interest goes to 0% as soon as you file on everything and the court lets you make payments to principal until it is paid off. very good option. second is a "reverse mortgage" but then, when she dies, you will not inherit the house.
2006-12-09 17:42:11 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Yes, speak with their attorney first. Best to know if she can sign for grandpa if he is incapacitated or unable to comply due to mental incapacity. A Realtor can help you with selling their current home. Moving them before you put the house on the market is a good idea. Less for them to go through. Maybe grandma could give you power of attorney.
2016-05-23 01:28:06 · answer #7 · answered by Lisa 4 · 0⤊ 0⤋