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feb 06-28-2011 01:53 PM

How Can I Help My Mother??
My mother (68 years old) just got divorced and is no longer able to afford to live where she is living. Here is her situation:

$105k mortgage (condo is worth 50k tops)
$7k car loan
approx $20k Credit Card balance

Approx $1k per month Social Security
Approx $1k per month from a 32 hour/week job
Lump sum $7k from divorce

At this point she can't stay where she is living as she can't afford it. I can help in 1 of 2 ways. (1) I can give her the extra she needs each month to make her mortage payment on a condo in Florida that is 100% underwater. Downside to this is we are paying off a condo that isn't nearl worth what the laibilties are. Or (2) I can buy her a different condo (around $30k)someplace nearby since they are all so cheap.

Since she's 68 I don't think she is that worried about her credit report.

What does she have for some options? Should she file for bankruptcy? She going to start the process to modify her mortgage but I'm not holding my breathe on that happening.

In my mind, the best option for her at this point in her life is to file for bankruptcy and move into a condo I will buy for her. If we go that route, should we stop paying her mortgage on her current condo to start showing that she can't make the payments?

Thank you.

DavidBibby 06-28-2011 07:24 PM

Re: How Can I Help My Mother??

Even at age 68.. she needs to start on Dave Ramsey's plan to get out of debt.

I wouldn't file for bankruptcy with that debt load. It's not an extreme amount of debt.

If she followed the Dave Ramsey program she could be out of debt in 18 months, not counting the house.

all other debts aside... how much is her house payment compared to her income? Is it more than 50%? If so.. I hope the modification helps some, but it might be better to short sale and move somewhere cheaper.

Unfortunately in this situation... she cannot be prideful. If the numbers say to downsize to a smaller place with a smaller payment... that is exactly what she should do.

littleroc 06-29-2011 10:39 AM

Re: How Can I Help My Mother??
I would strongly suggest that she look into a short sale, because her monthly mortgage payment is around $700 and she cannot afford that when she has 20k in cc debt and 7k on a car loan. Time to get a handle on your finances. I would suggest she look to rent something affordable based on you income. Time to settle these debts, why at 68 does she still have so much debt.

Fredy Atwater 08-03-2011 01:11 AM

Re: How Can I Help My Mother??
If she can do a short sale your Mom would avoid damaging her credit. Consult a real estate lawyer on that issue.

If you can afford to buy her a condo go ahead. But again consult a real estate lawyer. Maybe is better for you to buy under your name.

I don't know Dave Ramsey. But I can recommend you John Commuta Transforming Debt into Wealth System .
This is a hands on system.

SarahJ 09-05-2011 02:12 PM

Re: How Can I Help My Mother??
It really doesn't matter why she has so much debt at 68. What matters is what should she do to help her. I agree with renting something more affordable. The credit card debt definitely has to get paid down so far. If she cannot afford to pay the debt bankruptcy would be an option..

littleroc 09-12-2011 03:06 PM

Re: How Can I Help My Mother??

Originally Posted by SarahJ (Post 26100)
It really doesn't matter why she has so much debt at 68. What matters is what should she do to help her.

The reason it matters is because how you change your attitude towards debt is a big deal, because most people just go right back into debt and don't fix the problem which is you.

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