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[quote=Anonymous][quote=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!!
[/quote]

If your spouse is determined to support their parent, then helping the parent keep the house is probably the most sensible option. It seems likely the parent will need to go on Medicaid eventually to pay for nursing home care? If so, you will want to see about what to do with the house - if you are pouring money into it, you would want it to be your asset, not the in-laws asset, so Medicaid won't come after it later to pay back the cost of the in-law's care. So if possible you might want to see if you could buy the house from the in-law and just pay the mortgage.

The question is, what is your in-law's plan for if he/she starts needing daily living assistance?  How to pay for an inhome aide? How to pay for assisted living if needed?

With SS as the only income, does your inlaw qualify for any food, utilities assistance? Does owning the house as an asset disqualify them?[/quote]

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