How Would You Start Over With $100k and a House to Sell?

[Anonymous]

Here's my abbreviated situation:

*30 years old
*Bankruptcy 3 years ago due to +$200k in uncovered medical expenses from an emergency surgery.
*Haven't worked since surgery. Became a 'stay at home' (1 special needs child) due to circumstance.
*Divorce finalized as of last week. No alimony or child support awarded.
*My mom died last week leaving me $100k and a small rowhouse with a reverse mortgage on the outskirts of Capitol Hill.

What would you do in my situation? What's the smartest move?

I can't take over the loan ($475k) due to my credit and unemployment. The house is in disrepair and would need extensive renovations to get what neighboring homes have gotten lately ($500-700k). It's too much of a money pit to risk the $100k. Speaking of which...

It's enough money to change the trajectory of my life, but I don't know which direction to head. I haven't worked in almost five years. I was 25 then, so I wasn't exactly locked in a career. So much time has passed that I would be starting over as entry-level assuming I could even get a job in the financial industry again with bankruptcy on my record. I'm not foolhardy with cash. I've survived by swing trading $50k from my father's passing two years ago. I've been lucky, but I don't want to push my luck with $100k as a daytrader.

What would you do?

[Anonymous]

I would take the money and go to nursing school.

[Anonymous]

Why was no child support awarded?

[Anonymous]

I would dump the house - break even! Or you could find prior that flip houses -- see if that are interested. Don't keep the house. It's just extra stuff to worry about.

[Anonymous]

People *

[Anonymous]

The reverse mortgage ends at death. So basically you are being offered the opportunity to purchase the home at market value, or something like it. Not a good idea. Leave this area and start over somewhere less expensive. Anywhere is less expensive.

[Anonymous]

Anonymous wrote:I would take the money and go to nursing school.

This. And leave the area. Nurses in this area make about $50k unless you can work lots of overtime (I am one). Not great for DC but very livable for most of the US.

[Anonymous]

Move to Greenville, SC or the suburbs of Charlotte and buy a house with that $100,000. Take out loans to go to nursing school at one of the tech schools down there.

[Anonymous]

Because of the reverse mortgage there's no inheritance there so give up the house. Take the $100k, and don't plan on spending much of it. Put at least half in an account that's a nest egg for you-- what you would already have in retirement if you had been working.

Does your special needs child qualify for social security disability payments? Will the child be in school soon so that you can work?

Is there any other inheritance from your mom? Items you can sell for example.

Can you work at all now?

[Anonymous]

use the 100k to pay half of what you owe (200k)

[Anonymous]

Folks, she can't qualify for a loan. Have you checked out prosper.com?

[Anonymous]

I would let go of the house and so long as ex allows you to move out of DC, move. For sake of child, if father will still be involved, someplace drivable for custody. Richmond is FAR cheaper. For less than $100,000, you can buy a condo and still have money left over for taxes and other expenses and be 90 minutes away (without traffic) from DC. There are several great public schools with special needs programs. If you want to move to MD, Hagerstown is much cheaper as well.

[Anonymous]

With a reverse mortgage, don't you have a year to sell the house and payoff the bank, or forfeit the money you are owed? If so, you'b better put it on the market immediately, as it could be hard o sell if in disrepair.

[Anonymous]

No child support or alimony when you have a sn child? That seems wrong.
No advice but just wanted to offer my condolences on the challenges and losses you've faced. Better days are ahead.

[Anonymous]

Anonymous wrote:Why was no child support awarded?

OP Here.
Ex is in a worse financial situation than I am, which is saying a lot considering I'm the one who's unemployed. At least I got out with all of the marital property, none of the marital debt, and my slowly rebuilding sanity.