Posted on: 22nd Feb, 2010 02:56 am
Here is my story:
Daughter and son-in-law bought a home during the property at it's highest point. Less than 2 years after the purchase my son-in-law passed away suddenly. He left a very small life insurance policy. Daughter paid off hospital bills (he was in ICU for 19 days), funeral expenses and burial plot, credit cards, put the rest in the bank. She has had the house on the market since 7 months after he passed away and as of today it has been 17 months on the market! Every month she goes to the bank and makes the house payment, so she is NOT behind. The realtor is trying for a short sale since in value of the house has plummeted and the area the house is in has 7 out of 10 listed houses being forclosures. They are actively trying to get a contract on the house and have lowered the price DRASTICALLY every 2 weeks, still with no luck.
My daughter moved in with her sister months ago because as she said, she can either afford the house payment or afford to eat, pay the car payment, get to work~but not both! If her husband were still alive this would not even be an issue. She has prided herself and her excellent credit and is very worried what may happen with it. Her late husband was 28 when he passed away and they had not been married quite 5 years.
Her debt includes 3 student loans and her car right now. Would it be to her benefit to do a DIL? Should she take what money she has left and pay off all her student loans (what she has in the bank will just cover those)? I hate to see her have to deplete her total savings but she needs to move on from this.
I apprecitate your opinion.
Daughter and son-in-law bought a home during the property at it's highest point. Less than 2 years after the purchase my son-in-law passed away suddenly. He left a very small life insurance policy. Daughter paid off hospital bills (he was in ICU for 19 days), funeral expenses and burial plot, credit cards, put the rest in the bank. She has had the house on the market since 7 months after he passed away and as of today it has been 17 months on the market! Every month she goes to the bank and makes the house payment, so she is NOT behind. The realtor is trying for a short sale since in value of the house has plummeted and the area the house is in has 7 out of 10 listed houses being forclosures. They are actively trying to get a contract on the house and have lowered the price DRASTICALLY every 2 weeks, still with no luck.
My daughter moved in with her sister months ago because as she said, she can either afford the house payment or afford to eat, pay the car payment, get to work~but not both! If her husband were still alive this would not even be an issue. She has prided herself and her excellent credit and is very worried what may happen with it. Her late husband was 28 when he passed away and they had not been married quite 5 years.
Her debt includes 3 student loans and her car right now. Would it be to her benefit to do a DIL? Should she take what money she has left and pay off all her student loans (what she has in the bank will just cover those)? I hate to see her have to deplete her total savings but she needs to move on from this.
I apprecitate your opinion.
Hi rolyat,
She can apply for a deed in lieu with her lender in order to get rid of the property. However, a deed in lieu of foreclosure will not be able to release her from her student loans or car loans. It will only help her to sell off the property. Also, it will reduce her credit score by 250 points.
Thanks
She can apply for a deed in lieu with her lender in order to get rid of the property. However, a deed in lieu of foreclosure will not be able to release her from her student loans or car loans. It will only help her to sell off the property. Also, it will reduce her credit score by 250 points.
Thanks