WWYD - bankrupt IL

[Anonymous]

What would you do if your IL is dependent on you financially to avoid foreclosure, has low six-figures in equity in their home, but will not sell?

Unmarried 79yo IL informed us in mid-2022 that they ran up 50k+ in credit card debt. Last year, we learned they were in pre-foreclosure and spouse (only child) agreed to cover mortgage. IL also filed for Ch 13 last year, which is now active.

IL’s only income is SS, about the same amount as their mortgage. They have about 300k in equity and plan to either get a job or rent a room for additional income.

There is 70k left on house. IL is in FL; we are in DMV.

Thank you!!

[Anonymous]

this is not your problem. stop paying the mortgage

[Anonymous]

Anonymous wrote:this is not your problem. stop paying the mortgage

Their spouse is an only child. If there is a close relationship with their parent, then it is OP's problem

[Anonymous]

They “won’t” sell? Bet they will if you stop paying for the house.

[Anonymous]

Get a good lawyer, get the cc debt brought down. I think not selling is probably smarter tbh. My ils sold, used money to repay cc debt, then didn't have enough money or good credit to buy a home, so they have been renting and getting further and further into financial trouble.

[Anonymous]

79? They only have a few years left. Don't pay the debt. Let it run. Stay in the house. Then when assets are spent, go into a Medicaid nursing home.

[Anonymous]

I think Florida is a really good state to declare bankruptcy and keep your house. I remember that’s why OJ moved to Florida because creditors couldn’t touch his house. You need to consult with an elder care lawyer based in Florida!

[Anonymous]

Anonymous wrote:I think Florida is a really good state to declare bankruptcy and keep your house. I remember that’s why OJ moved to Florida because creditors couldn’t touch his house. You need to consult with an elder care lawyer based in Florida!

+1

[Anonymous]

^ yes, I've heard that too. np here. Do not throw anymore money their way. Make sure spouse isn't either.

[Anonymous]

In FL selling and then trying to rent is going to cost them $$$$. A 1bdr is now over 2k. They won't save that way. Staying put is best. Renting a room they can make 1k/mo if in south FL. People are desperate for housing.

[Anonymous]

Believe me covering the mortgage is muuuuuch better than them crashing financially, losing the house, and having to move in with you. Ask me how I know!

[Anonymous]

They could live for 10-15 years.

[Anonymous]

I’m an only child. Selling the house will not net enough money to live out their life and it will cost you more in the end.

$70k left on the mortgage? Unless it’s a very low rate, pay it off. If needed, have the relative transfer the house to your spouse and they pay utilities from SSI. Pay for regular maintenance of the house so you can sell it when they die.

[Anonymous]

Anonymous wrote:I’m an only child. Selling the house will not net enough money to live out their life and it will cost you more in the end.

$70k left on the mortgage? Unless it’s a very low rate, pay it off. If needed, have the relative transfer the house to your spouse and they pay utilities from SSI. Pay for regular maintenance of the house so you can sell it when they die.

How to say “I have an unlimited bank account” without saying it. Did it ever dawn on you that OP might not have the cash for this??

[Anonymous]

Anonymous wrote:I’m an only child. Selling the house will not net enough money to live out their life and it will cost you more in the end.

$70k left on the mortgage? Unless it’s a very low rate, pay it off. If needed, have the relative transfer the house to your spouse and they pay utilities from SSI. Pay for regular maintenance of the house so you can sell it when they die.

At the very least, keep the mortgage payments current, keep it out of foreclosure.

If you do that, make sure the house is going to you when they pass away. You don't want them to leave the house to their nurse or to the cat or something annoying like that.