acklac7 Posted September 22, 2014 Report Share Posted September 22, 2014 So my Father is in sort of a tough spot. Trying to see if I can get some advice to help him out, because frankly he's not taking the steps needed to help himself, but thats a whole different story. At any rate he's 65, fully disabled, stage 3 Cancer survivor that is now battling fully-debilitating peripheral nueropathy (loss of feeling/control in his lower legs). Unfortunately his credit took a hit with the Medical bills/Cancer expenses and is currently in the “poor” category. That said he currently owns a Condo and has approximately $55,000 in equity built up. So my question: is there any way to touch the equity with his credit rating? At this point we're not sure if he's going to need to sell the Condo and move into an assisted living residence, or whether he will be able to live on his own. No matter what the outcome it's absolutely critical that he somehow get access to a small portion of his equity. We're not talking much, maybe $8000 or so. He's already tried to get a second mortgage and was declined. Are there any other options? Quote Link to comment Share on other sites More sharing options...
Mojoe Posted September 22, 2014 Report Share Posted September 22, 2014 Predatory lending and his credit score don't give him any options, but to sell, IMO. His score is probably too low for a reverse mortgage. Sell it and stack the funds to live very frugal. Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted September 22, 2014 Report Share Posted September 22, 2014 Just by the stats, If he's going through those sorts of health issues it's going to be tough to maintain an independent lifestyle WITH in-home medical assistance...but not having any LTC insurance. I'd go bootstrap for the next few months if you want to hold out hope...but I agree 100% with Joe: make wise choices now to get him the help he needs (in the next several months) to maintain some semblance of normal life while still receiving needed medical care. Quote Link to comment Share on other sites More sharing options...
Tractor Posted September 22, 2014 Report Share Posted September 22, 2014 If an assisted living home becomes the options be sure to check on rules regarding selling property. My parents are going through this with my grand parents now. I get to go behind the scenes in assisted living facilities (ie the office parts) on a regular basis and from the chatter I pick up it seems they are in the real estate business as much as elderly care. There are legal ways around this, but it requires planning and time. Something we should all be aware of for ourselves and our parents before the health care system steals our inheritance. Quote Link to comment Share on other sites More sharing options...
kirks5oh Posted September 22, 2014 Report Share Posted September 22, 2014 If an assisted living home becomes the options be sure to check on rules regarding selling property. My parents are going through this with my grand parents now. I get to go behind the scenes in assisted living facilities (ie the office parts) on a regular basis and from the chatter I pick up it seems they are in the real estate business as much as elderly care. There are legal ways around this, but it requires planning and time. Something we should all be aware of for ourselves and our parents before the health care system steals our inheritance. Or just fix the health issues yourself at home in your backyard? I guess free healthcare and assisted living is a god-given right in this country. Do you expect to put your loved one in a huge basket, leave them at the back step of a nursing home, ring the doorbell, and go back to their old house and enjoy the "inheritance", without paying for anything? Let me guess..... You're the first one to bitch about how the facility is under-manned too. Quote Link to comment Share on other sites More sharing options...
Tractor Posted September 22, 2014 Report Share Posted September 22, 2014 Nope,I hardly ever go and have rather radical beliefs about health care. Going off topic but basically we need it be universally for everyone or only for those who can pay. No in between or the system can't be maintained. Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted September 22, 2014 Report Share Posted September 22, 2014 Define "poor" credit. Below 640? There may be options for a refinance, but it can be tough and costly. Honestly, as the others have said, it may be wise to try and sell the property now. The market we are in is short available homes for sale and what is for sale, has been collecting very good money. The smartest move from your brief explanation is having me lean towards selling while the market is at its 7yr peak and going from there. Feel free to PM me for more information if you would like. Good luck, -Marc Quote Link to comment Share on other sites More sharing options...
Mensan Posted September 22, 2014 Report Share Posted September 22, 2014 Does he have any way to keep making the payments? If so, buy the house from him. If you're uncomfortable with the financial repercussions of being left with the house when he goes, then talk to him and ensure you're buying at a price that will give him a fair amount but also gives you instant equity, so you're taken care of. Quote Link to comment Share on other sites More sharing options...
acklac7 Posted September 22, 2014 Author Report Share Posted September 22, 2014 He is currently ok with his bills, but barely holding his head above water. Biggest issue right now is the doctors are sort of stumped on what exactly is causing the Nueropathy and we are faced with having to make multiple trips up to the Clevland Clinic to get a second opinion (Nueropathy comes and goes, one day he can walk without a cane, next day he more or less needs a wheel chair). At any rate he is in agreement to sell his place (everyone agrees that is the best option) however there are a number of improvements that must be done in order to put it on the market (part of the reason he needs access to $). Also we're going to try and wait until Spring to put it up for sale, as a big selling point is the foliage/view from the rear of the Condo. At any rate thanks for the advice, pretty much what I thought all along, but just wanted to make sure. Quote Link to comment Share on other sites More sharing options...
Littleguy Posted September 22, 2014 Report Share Posted September 22, 2014 My advice would be to sell it to an investor. Find a rental property investor and sell it to them for a good price and build into the contract a 10 year lease (or however long you think he needs) and he will just pay rent to the investor who purchased it. That way he has fixed rent for a period of time and no longer has to pay condo fees, maintenance, or taxes, just the rent. Quote Link to comment Share on other sites More sharing options...
acklac7 Posted September 23, 2014 Author Report Share Posted September 23, 2014 My advice would be to sell it to an investor. Find a rental property investor and sell it to them for a good price and build into the contract a 10 year lease (or however long you think he needs) and he will just pay rent to the investor who purchased it. That way he has fixed rent for a period of time and no longer has to pay condo fees, maintenance, or taxes, just the rent. Great advice, however the (Condo) Association By-Laws specifically prohibit rental units / renters. Best thing for everyone is to sell the place, however it needs new carpet and some misc work before it can go on the market. I'd estimate $2000 worth of work will yield at least $10,000 on the final selling price, maybe more. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.