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Saving a home from foreclosure due to illness?

I have a question about saving a home from foreclosure.

My divorced mother recently had a heart attack and has been hospitalized since January. She has a modest home in Houston. She is receiving 60% disability from her insurance through her employer. Due to complications, she will be incapacitated for another 6-8 months. Since I am not in a position to meet her mortgage in addition to mine, what other options are available for saving her house until she can go back to work? Her 60% income is enough to meet her other financial obligations but not the mortgage. I have a Power of Attorney and contacted the lender and they pretty much were not helpful. Does anyone have any ideas other than selling the home? She is 62 and lives alone.

Thanks for your help.
Comments: I’m not paying credit cards and there is no car payment. Only utilities, the mortgage and insurance (home, auto and health). The house is not in danger at the moment of being foreclosed. I’m trying to keep it from ever getting to that point. The home lender was not helpful and would not work with me. Thanks.

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4 Responses to "Saving a home from foreclosure due to illness?"

  1. whatevit says:
    Why are you optioning to put the house at risk. You can pay the mortgage, let the other bills default. THE CREDITORS WILL PUT A LEIN ON THE HOUSE. They will get their money when it is sold.

    You can have the house transfered to someone else at a later time for a price that clears all leins, this gives you time control. make certain there is equity in the home to save. If not, let it go.

  2. linkus86 says:
    When people get near foreclosure they usually simply give up. What they don’t realize is that by simply calling the lender that holds the mortgage you can discover multiple options that you didn’t know were available. If that doesn’t work and If your mother bought her house with an FHA mortgage I suggest you call FHA directly, they will help for certain. Other options include refinancing the house in a manner to allow for a more affordable payment or even a “reverse mortgage” which basically uses existing equity to pay all or part of the payment.

    But if Mom is destined for long term care it might be in her best interest to sell the house which would likely be necessary for her to take advantage of medicaid benefits. I think the rule is that she can’t own assets (a house is an asset) to get the benefits.

    If you aren’t paying the minimum payments of the credit cards, you are screwing up her credit and you won’t be able to refinance at a good rate. The only option to avoid a foreclosure (which will come if she gets behind in payments) and save her equity is to put the house on the market immediately and hope you sell it before the bank send you a demand notice (to pay the loan in full). At least this way Mom will be able to utilize her equity to buy a new house when she gets back on her feet.

  3. newmexicorealestateforms says:
    Here are links that you will find very helpfull
    Consumer Credit Protection US Federal Laws: http://uscode.law.cornell.edu/uscode/html/uscode15/usc_sup_01_15_10_41.html
    Federal Statutes Laws having to do with Banking, from Cornell University: http://uscode.law.cornell.edu/uscode/html/uscode12
    Federal Code Laws having to do with Banking from Cornell University: http://www.law.cornell.edu/cfr/cfr.php?title=12
    Free legal aid search for all states: http://www.lawhelp.org/
    (CFR) Code of Federal Regulations: http://www.gpoaccess.gov/cfr/index.html
    Mortgage law an Overview: http://www.law.cornell.edu/wex/index.php/Mortgage

    For sure you need to go see this site right away
    Steps that can be taken to prevent foreclosures: http://www.consumerlaw.org/initiatives/seniors_initiative/advforcl.shtml
    You might be able to find additional assistance here
    Web sites for housing and other services for seniors: http://www.seniorsites.com/
    Buena Suerte

  4. José says:
    As you probably know the bank does not care about anything except getting their money. This you need to work to your advantage. You always need to try to contact the mortgage lender and if that person is not of help demand to speak to the supervisor. Usually you can be placed on a hardship program which can reevaluate your mothers loan and even cut your payments for a certain amount of time. Foreclosure costs banks thousands of dollars and can sometimes make the bank lose money if they accept a short sale deal. The bank is better off letting you have a break for a while until your mom is able to continue her payments. I would recommend a lawyer in this situation to guide you and give leverage in dealing with the bank. If you cannot afford a lawyer, ask a Realtor experienced in this field. They might be able to get past some of the 1-800 #’s reps and actually get you moving in the right direction. They should be able to do this for free, just promise to use them if foreclosure is inevitable to list the property or to refer business in the future. I would also think about using the 60% income and pay the mortgage with it. I assume your mothers home is more valuable than a credit card or car payment. Just do not wait! I’ve had clients who did not take this seriously and they are now out of a home. Just the same I have some who are back on path and never had the drama of foreclosure. Good luck, email me if you need more help.

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