Posted on: 11th Jan, 2009 09:07 pm
I just moved my parents out of their FL home as my Dad has terminal brain cancer and my Mom is disabled. They are in an independent living facility and cannot afford to keep paying the mortgage. They bought the house two years ago near Sarasota due to my Dad taking a job in the area. They paid 380K, owe 265K, but likely can't sell for more than 260K at best. There will be no more earned income, and they can't afford to pay the difference plus realtor fees. Can I negotiate something with the lender on their behalf? Where do I turn for help? :cry:
Welcome Cindy,
I suppose you can negotiate with the lender on your parents behalf since they are not fit enough to do so. You can explain the lender why you'd like to negotiate on their behalf. Since the property can be sold for $260K, the remaining $5K can be paid off provided you can afford to do it on their behalf.
However, in case you don't want to sell the home, you can talk to the lender about loan workout options such as forbearance or loan modification. However, in each of the cases, the lender requires some payment. And if your parents cannot repay, then I suppose the best thing will be for you to refinance the loan in your name and keep making the payments.
I suppose you can negotiate with the lender on your parents behalf since they are not fit enough to do so. You can explain the lender why you'd like to negotiate on their behalf. Since the property can be sold for $260K, the remaining $5K can be paid off provided you can afford to do it on their behalf.
However, in case you don't want to sell the home, you can talk to the lender about loan workout options such as forbearance or loan modification. However, in each of the cases, the lender requires some payment. And if your parents cannot repay, then I suppose the best thing will be for you to refinance the loan in your name and keep making the payments.
Adonis
Thank you for your reply. I can't see keeping the house. I live out of state, and my parents can no longer live there. I can't afford to take over payments for them, either. Is there any way to negotiate a short sale before a payment has been missed? My Dad just recently stopped working, so they are up-to-date. My parents have always been very responsible; the fact that this cancer coincides with a dramatic housing market downturn is just rotten luck. With attorney's fees it looks like they would have to bring around 20K to the table, even after losing the 115K they'd put into the home. Dad just wants to walk away, but I am trying to find a better solution. He certainly won't be able to negotiate as he gets too confused.
Thank you for your reply. I can't see keeping the house. I live out of state, and my parents can no longer live there. I can't afford to take over payments for them, either. Is there any way to negotiate a short sale before a payment has been missed? My Dad just recently stopped working, so they are up-to-date. My parents have always been very responsible; the fact that this cancer coincides with a dramatic housing market downturn is just rotten luck. With attorney's fees it looks like they would have to bring around 20K to the table, even after losing the 115K they'd put into the home. Dad just wants to walk away, but I am trying to find a better solution. He certainly won't be able to negotiate as he gets too confused.
Whoops, that should be "realtor's fees", not attorney's. I guess I was a little too tired last night.
first i would start by getting a power of attorney over your parents. this way you can start making financial decisions for them legally.
then i would try to contact the loss mitigation department of the company. i think that a short sale would work best in this scenerio.
i am not sure what they do in cases of terminal illness or death. the mortgage company doesn't want to foreclose, but sometimes they are hairy to work with. it takes time and patience.
start with the power of attorney so that you can make decisions medically and financially for your parents. i would get a statement or something from your parents doctor to prove that they are ill. then call the mortgage company.
you could also call the mortgage company and give them fair warning. that way they have it noted in their system what might be taking place.
i am sorry your parents aren't well and i do pray it all works out for the best. stay strong.
then i would try to contact the loss mitigation department of the company. i think that a short sale would work best in this scenerio.
i am not sure what they do in cases of terminal illness or death. the mortgage company doesn't want to foreclose, but sometimes they are hairy to work with. it takes time and patience.
start with the power of attorney so that you can make decisions medically and financially for your parents. i would get a statement or something from your parents doctor to prove that they are ill. then call the mortgage company.
you could also call the mortgage company and give them fair warning. that way they have it noted in their system what might be taking place.
i am sorry your parents aren't well and i do pray it all works out for the best. stay strong.
Thank you, Elnora! I will have a POA because it has been signed, but we are waiting to get the packet of papers from the lawyer. My Dad's condition has worsened rapidly, so there is a lot happening all at once.
I appreciate the advice and the kindness.
I appreciate the advice and the kindness.