My disabled father informed me today that he is 5 months behind on the mortgage and the house will be forclosed on. I am only 22 and live in my own apartment. Is there anything my father can do? He does not have the money to catch up.
2007-06-18 15:53:53 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Ouch. Sad situation, but the bank will foreclose unless the payments are made. The people who work at the bank have feelings for customers such as your father, but the bank policy will require that the continue with the foreclosure unless something is done.
You might speak with the bank about avoiding foreclosure by offering a 'deed in lieu' or a 'short sale arrangement'. However, it appears that your father simply needs to find less expensive housing, so he does not get into this situation again.
2007-06-18 15:58:38 · answer #1 · answered by acermill 7 · 1⤊ 0⤋
If you really want to keep the house maybe he can claim a hardship and get some kind of extension. Or perhaps you or him can apply for some kind of loan. I would suggest, though, finding alternative housing for your father. Something more affordable, so all his disability does not go to mortgage payments and he has money to live on. Perhaps assisted living so there is someone there to help him at all times, but he still can retain his independence.
2007-06-18 23:04:45 · answer #2 · answered by pixie22406 3 · 0⤊ 0⤋
This is a drastic step but your parents should consider bankruptcy. Indeed it will ruin their credit and appear on their financial records for 7-10 years, but if they are 5 months behind on a mortage, the credit report is looking pretty bad already.
This is not an attractive alternative but it would allow him to remain in his home. He would pay a sum determined by the courts based on his income and his obligations, the courts then pay the creditors they deem necessary. Some bills are completely wiped away ( unsecured credit cards, medical bills, etc).
It is not a crime in America to not be able to pay your bills. In fact, Georgia was founded as a debtors colony.
2007-06-18 23:02:41 · answer #3 · answered by †LifeOnLoan† 6 · 0⤊ 0⤋
Selling it looks like it might be the best option, especially if they have equity. If not you should approach the mortgage company about a short sale (where you sell the house for less than the mortgage with the mortgage company's consent.
2007-06-18 23:07:26 · answer #4 · answered by WoodsinAZ 2 · 0⤊ 0⤋