Reverse mortgage question
Date: Mon, 03/16/2009 - 19:06
She was considering bankruptcy for a while. She was hopeful she could sell the house and negotiate the debt with the proceeds and still keep a chunk of the money for my folks to buy a downsized home.
Since the house hasn't sold she is worried that she will get sued by the credit card companies and they will put a lien on the house.
Her new plan is to get a reverse mortgage. She says she can get a reverse mortgage that will give her 30K in a line of credit in case of emergency and reduce their monthly payment from about 2400K/mnth to about 1100K/mnth. She wants to pay the interest on the thing for a couple of years and then hopefully they can sell it if the market improves.
They are both about 70 and the house is their only asset. Between retirement and social security they bring in about 5K/mnth. If one were to pass the other would get about half that.
I worry that the interest will eat up any equity and that the rates will go up dramatically once the inevitable inflation that follows large governement debt kicks in.
What says the group: Is this a good plan or shoudl they just declare bankruptcy?
Thanks to all who consider this and offer their thoughts!
Hi ks338, That is a sizable amount of debt. I would say that
Hi ks338,
That is a sizable amount of debt. I would say that bankruptcy is definitely the way to go in this case.
Wait until after the bankruptcy discharge to do that reverse mortgage.
chrys
I agree. Reverse mortgages aren't credit driven. So you can do
I agree. Reverse mortgages aren't credit driven. So you can do a reverse mortgage a day after the bankruptcy has discharged.
two names on home
I have a home and i have my name on it and my 90 year old mothers name is on it , she has a 30,000 dollar credit card debt , can they put a lien for her half of the home , we currently rent it out . and if she passes away does that debt die also , that is the only assest that she has in her name . :?:
They can put a lien on the house for the full amount of the debt
They can put a lien on the house for the full amount of the debt. If she dies, you will need to send them a death certificate and the judgement will then be not collectable.
CREDIT CARDS
Is that a definite , because I always heard that they can not take half of a home , I worked a deal out with them , i am paying the debt , 250.00 a month with 1000.00 down , if i keep paying and when the day comes that my mom passes and i want to sell , will they go after the remaning money , or should i not pay them anything and just keep renting the home .
They can't take half the house. They can only force the house t
They can't take half the house. They can only force the house to sell and the debt would be paid in the funds. This rarely happens. And I mean rarely.
They can put a lien on the house for the debt because your mother's name is on the deed as well.
I work in the mortgage industry so yes, this is a definate. I deal with it everyday.
I guess I should put it this way, if they have filed for a judgement then they can put a lien on the house. If a judgement has been awarded then they can't put a lien on the house. As long as you are paying them monthly then there is no reason for them to place a judgement against her.
I have a reverse mortgae. Can a credit card company put a judgme
I have a reverse mortgae. Can a credit card company put a judgment on that reverse mortgage?