I wanted to share a story with you. I went to visit a homeowner today that is currently 6 months behind on her mortgage payments. The house is in an undesirable neighborhood and is falling apart. Ther are also several homes on the same block that are REO's and are borded up. I spoke with her about her situation ( I will not get to it in detail because it's private ) she tells me that she took out a home equity line of credit of $350,000 last August to help her two other children to bring their mortgages current. $200,000 for one home and $150,000 for the other. (can you believe this?? Oh My G O D !!!) she was hurt at her job and now recieves $600.00 in desabilty ( monthly mortgage payment is $3,500 ) The house that she helped to bring current (150K) was eventually foreclosed on anyway and now her son is in a shelter. She inhereted this home in 1974 fom her landlord, she raised all of her 5 children there and her mother past away there too. So you see the centemntal value. To make a long story short, The amount of repairs is unbelievable. my CMA did not look good at all. around $150,000. During our meeting the homeowner cried and at timeswas hystericaly laoughing, but in the end she said " I am so happy that you came to visit me and gave the facts " I still hope that I will be able to help her.
good post..it is very sad..how people can be talked into doing these things..
Irena -
Sorry but she is a grown up. She knew her kids. She knew they were already behind on their payments (not just one child but 2) and SHE CHOSE to borrow money she obviously did not have to borrow. I'm very sorry she is in this mess but had she been a better money manager with the equity she had and not given it to her children (who are also grownups) she would have been able to keep her home longer when she was injured on the job because she would have had equity....
Life is about choices and she made poor ones.
Irena, this woman does have massive financial and real estate problems. I hope you can do what you can to help. A lot of the earlier decision making on her part has turned catastrophic for her. The amount of debt she incurred is staggering!
I hate to be a grinch here, but the numbers don't add up. She was mortgage free and borrowed $350,000 which didn't go to her home payments. Now, she's lived rent free for 6 months??
If either of her children owed that much, they'd have been foreclosed a long time ago. Unless they are in an FHA forebearance, they couldn't have kept posession that long.
Just doesn't add up.
I have to say, I agree with Lenn here...something seems odd about the numbers. It is very sad to see and hear about situations like this...
I can't believe the bank gave her the money. It was too much for her house. If anyone could help her you could if its not too late. Its a terrible story. There is too much of this going on. good luck val
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