He should plan to move.

1. Is the best option.

What he wants isn’t really relevant. He can’t afford his house if he doesn’t have the income to replenish his savings and pay for his other expenses after paying off the loan.

He made his decision when he decided to live above his means during his working years.

This is NOT your responsibility or your fault. Say that every time you need to remember.

Anonymous wrote:

Anonymous wrote:What will his monthly payment be, on the payback? Can he use his $30k to slowly pay down, keeping the bulk of it for home repairs?

If we are not able to refinance to anything better, I think it's going to be about $650. So yes the $30k could buy him a couple of years. I think the interest rate was/is high because I think it's variable and tied to the market. My mom handled their bills prior to her death. Their original plan was once the primary mortgage was paid off, to take that same payment and put it toward paying off the HELOC. But my mom passed away before that happened and my Dad did not feel that he could afford to do that with the loss of her income.

I think buying him a few years by repaying the HELOC is a decent plan. In 5-10 years, he may have more support needs and then that can force his move rather than strictly finances.

Don’t do a reverse mortgage because you fear he won’t be able to pay in five years. If he is 70, five years is a fair horizon for planning because things change quickly at that age.

Anonymous wrote:

Anonymous wrote:That he ~ adamantly does not want to move, is unimportant. He can't afford where he is

OP here, and I agree but you can't force an independent adult to do anything. I think he will just do the reverse mortgage before he moves, so I am trying to come up with alternatives he might go for instead. There may not be any.

I think you have to make peace with the reverse mortgage, then. Sounds like he'll spend down his assets over the next 10 years, so he should qualify for help when he runs out.

Anonymous wrote:How much is the house worth?

Zillow says $415k. But realistically I think it's a lot lower based on condition. Maybe $350k? Not taking into account the amount owed on the HELOC.

How much is the house worth?

PP has a good idea. Look at lost financial property sites for his state.

There were some major insurance companies that converted policyholders to small stockholders about 30 years ago and did not manage to find all of their policyholders.

I found a small amount of assets belonging to three people in my family when I went looking. Maybe a few $1,000 worth.

It beats digging in the car backseat for change.

https://smartasset.com/personal-finance/the-top-states-for-unclaimed-property

It sounds like he's going to have to move. I'm sorry.

If he isn't good with money or never handled it, you should consider what else might be available. After my grandfather died it turned out he had some random life insurance policies from old forgotten jobs that paid out.

Anonymous wrote:That he ~ adamantly does not want to move, is unimportant. He can't afford where he is

OP here, and I agree but you can't force an independent adult to do anything. I think he will just do the reverse mortgage before he moves, so I am trying to come up with alternatives he might go for instead. There may not be any.

Anonymous wrote:What will his monthly payment be, on the payback? Can he use his $30k to slowly pay down, keeping the bulk of it for home repairs?

If we are not able to refinance to anything better, I think it's going to be about $650. So yes the $30k could buy him a couple of years. I think the interest rate was/is high because I think it's variable and tied to the market. My mom handled their bills prior to her death. Their original plan was once the primary mortgage was paid off, to take that same payment and put it toward paying off the HELOC. But my mom passed away before that happened and my Dad did not feel that he could afford to do that with the loss of her income.

That he ~ adamantly does not want to move, is unimportant. He can't afford where he is

I would look into refinancing the HELOC, or paying it off and taking out a new one immediately.

What will his monthly payment be, on the payback? Can he use his $30k to slowly pay down, keeping the bulk of it for home repairs?

He needs to move.

My widowed father lives out of town in a middle cost of living area. He lives in the house I grew up in. The primary mortgage has been paid off for several years but he still has a HELOC that was taken out decades ago and has never been repaid apart from interest payments. He has been notified that he will need to start paying a certain amount towards principle based on (I assume) the original terms of the HELOC. He has maybe $30k or so in cash and stocks plus the value of his home equity and that's it. He otherwise lives on social security which isn't that high because he took it at 62. He could probably pay off the HELOC if he liquidated all of his other assets but he doesn't want to do that because he won't have any money for home repairs, etc. and as the house is getting quite old, it's not an outlandish concern. He adamantly does not want to move. He already has a roommate who does pay rent but I don't think it's market. He wants to do a reverse mortgage which my sibling and I and other family members think is a bad idea. Can anyone think of any options not listed below, and/or does anyone have any thoughts on the options?

1. Sell the house and move somewhere more affordable. (He doesn't want to and doesn't know where he would go.)
2. Do a reverse mortgage (I think the fees and interest are predatory and have a very real concern that if he "lives too long" essentially he will be evicted from his own home. The stats on that are pretty bad, especially past the 10 year mark. He's in his early 70's and in ok health but not stellar.)
3. Try to refinance the HELOC and get a more reasonable payment that is still taking care of some principle. (I'm not sure this is even possible without a job, and he would likely need to spend down current assets to make the payments.)
4. Pay off the current HELOC and essentially be out of cash. (But then how would he pay for repairs ie: roof or HVAC, etc.)

Has anyone been in a similar situation and what ended up happening?