I don't know where else to turn at this point, so I came to people who have been there/done that. I hope someone can point me in the right direction.
Story begins about 2+ years ago. My brother Mike has a house in PA, he fell behind on payments and ended up selling it to "someone" with the terms that after 12 months if he couldn't buy the house back, then that "someone" would keep the house. Brother owed $625,000 (I think) on the house but it appraised at $780,000 at the time.
My dad felt badly for brother, paid a few payments for him, and in April of 2007 he arranged to buy the house back because brother couldn't get a loan.
Dad borrowed $200,000 on his own house as a down payment on brothers house and then got an additional loan for $425,000 (I think) for brothers house. Brother was supposed to turn right around and sell it for more then he owed and they would both be OK, well he didn't. Then he didn't make the payments either.
Fast forward to March '08, my dad had an aortic dissection and after a few months it was clear he wasn't going to be able to return to building cabinets as he had been doing so he filed for disability social security and is now getting $1400 per month in SS.
Between brothers house, dad's house and all the utilities and such, it costs dad about $6000 per month. He had an inheritance from his mom and was using it to stay afloat.
Bad news... November 26th my dad was in a quad runner accident and got a fractured skull. He has been in the ICU ever since and the Dr.s can't give us any indication as to whether he'll even survive or be able to function IF he does survive.
Dad has a girlfriend of 15 years that has always lived with him. Apparently she has POA 1st, then it goes to me. Her and I both need to work together to figure out what we're going to do to protect my dads finances.
Breakdown... brothers house has been for sale for months now for $569,000 and no interest has been shown. I am waiting for the agent to call me to give me exact numbers, but from what I remember, the loan is for $425,000, dad's girlfriend thinks it's $480,000. I am going to ask the agent at what price does he think he can get a quick sale for it. If we can sell it even for $500,000 and come out with a few thousand bucks, great! There is also some issues I need to find out about, but taxes will be due soon and they are about $5800. Dad's girlfriend also told me that last years taxes are due too in the amount of $8000. I don't know anything about that, but the agent should be able to clear that up.
Question is... if we can't sell it in a matter of a month, I don't want to make additional payments on it. The payment on brothers house is $2100. Dad has $20,000 cash left and that's IT for him to live on. So what are our options about foreclosure or short sale or ?????
We might also have an issue with my dads primary residence. He owed $110,000 on it, it WAS worth over $550,000 but as we all know, that changed this past year. Well in addition to the $110,000 first mtg, he has that 2nd mtg in the amount of $200,000. He can't afford the payments on that either. I was told that some banks might be able to reevaluate your mtg in lieu of you foreclosing. A friend of mine knows someone who's loan was drastically reduced so that he could stay in the house and make the payments. The terms were reduced so that he could afford it and the bank got something rather then nothing. At what point does this happen? Is it possible I could maybe get my dad's mtg reduced to an amount he might be able to afford??
The surgeon told me last night it could be 6 months before we know how dad is going to come out of this. As of right now he's still in an unresponsive state and is being sedated. They have done all they can for him medically, now it's just wait and see if he survives and what is left.
Story begins about 2+ years ago. My brother Mike has a house in PA, he fell behind on payments and ended up selling it to "someone" with the terms that after 12 months if he couldn't buy the house back, then that "someone" would keep the house. Brother owed $625,000 (I think) on the house but it appraised at $780,000 at the time.
My dad felt badly for brother, paid a few payments for him, and in April of 2007 he arranged to buy the house back because brother couldn't get a loan.
Dad borrowed $200,000 on his own house as a down payment on brothers house and then got an additional loan for $425,000 (I think) for brothers house. Brother was supposed to turn right around and sell it for more then he owed and they would both be OK, well he didn't. Then he didn't make the payments either.
Fast forward to March '08, my dad had an aortic dissection and after a few months it was clear he wasn't going to be able to return to building cabinets as he had been doing so he filed for disability social security and is now getting $1400 per month in SS.
Between brothers house, dad's house and all the utilities and such, it costs dad about $6000 per month. He had an inheritance from his mom and was using it to stay afloat.
Bad news... November 26th my dad was in a quad runner accident and got a fractured skull. He has been in the ICU ever since and the Dr.s can't give us any indication as to whether he'll even survive or be able to function IF he does survive.
Dad has a girlfriend of 15 years that has always lived with him. Apparently she has POA 1st, then it goes to me. Her and I both need to work together to figure out what we're going to do to protect my dads finances.
Breakdown... brothers house has been for sale for months now for $569,000 and no interest has been shown. I am waiting for the agent to call me to give me exact numbers, but from what I remember, the loan is for $425,000, dad's girlfriend thinks it's $480,000. I am going to ask the agent at what price does he think he can get a quick sale for it. If we can sell it even for $500,000 and come out with a few thousand bucks, great! There is also some issues I need to find out about, but taxes will be due soon and they are about $5800. Dad's girlfriend also told me that last years taxes are due too in the amount of $8000. I don't know anything about that, but the agent should be able to clear that up.
Question is... if we can't sell it in a matter of a month, I don't want to make additional payments on it. The payment on brothers house is $2100. Dad has $20,000 cash left and that's IT for him to live on. So what are our options about foreclosure or short sale or ?????
We might also have an issue with my dads primary residence. He owed $110,000 on it, it WAS worth over $550,000 but as we all know, that changed this past year. Well in addition to the $110,000 first mtg, he has that 2nd mtg in the amount of $200,000. He can't afford the payments on that either. I was told that some banks might be able to reevaluate your mtg in lieu of you foreclosing. A friend of mine knows someone who's loan was drastically reduced so that he could stay in the house and make the payments. The terms were reduced so that he could afford it and the bank got something rather then nothing. At what point does this happen? Is it possible I could maybe get my dad's mtg reduced to an amount he might be able to afford??
The surgeon told me last night it could be 6 months before we know how dad is going to come out of this. As of right now he's still in an unresponsive state and is being sedated. They have done all they can for him medically, now it's just wait and see if he survives and what is left.
Comment