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my mother in law bought a house last year and now, she can not afford the mortgage what should we do?

she bought a 20 years old house with 5 bedroom 3 bath and...

by the time she was living with her mother,doughter,and son.

now she is alone living with no one but a cat!!! so the house is too big for her,mortgage,and utilitys,takeing a car of the house,and.... are high,she decided to sell the house but,in this market and other things (like:rail road right behind the house,creek on the side,the age of the house,and some stuff that needs to be fixed,and....)no one is intersted in the house.so she has no way but forclosure,but how and what is gonna happen to her credit and future, we realy love to know before doing any thing stupid,if you need more info please feel free to ask me.

thanks.nick.

13 Answers

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  • 1 decade ago
    Favorite Answer

    Her credit will be completely trashed. Avoid bankruptcy of you can. Is she in trouble b/c of an ARM adjustment? If so, she may be able to qualify for a freeze on that rate. tb

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  • Kat G
    Lv 6
    1 decade ago

    Right now 68% of people are loosing there homes to forclosure in the U.S.

    Location makes no difference at this point it is what it is. She have had to also pay based on that even though the market was higher then.

    I would do is the following.

    check her intereste rate on the loan and make sure it is a fixed rate. If it's not get her a fixed rate.

    Look to rent out 3 of the bedrooms in the house and have boards pay by the week. Each room pending your state should be around from the low end of 75-200 per week.

    Make sure they pay 2 weeks security in advance.

    You interview and collect the rent to they do not look to take advantage of her at her age.

    If she dose not feel comfortable then she might want to rent out the whole house and live with family until she is on her feet.

    I would not look to get forclosed on. She will not get anything regarding credit for 7 years and with her age her working income she will make things worse for herself then better.

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  • 4 years ago

    If the only reason you need a co-signer is to save interest then forget it. You can refinance later down the road after you have established your own good credit line. You need to work within your own boundaries and not ask for their help. What you said to her was, well, right and wrong. You should have avoided the fowl words. Otherwise you were in your place to defend yourself. Hopefully her son will support you and agree to make it in this world without using them to smooth the way for you. You have worked hard already in your life so you understand the need to do so. Help your man to see this too. He has not had to do what you have to survive. He has always had dad to help him out and to provide. You are taking him away in their eyes not that dad is the problem but the mother will always see it that way. Mothers with money never seem to just let go. Once in control they want to stay in control. No other woman will ever be able to take care of her boy properly and since she has the money all women are going to be after it. Love your man and help him to live without their help.

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  • 1 decade ago

    What about renting it out? There are always people looking to get a house big enough for them and that sounds as if it would be good. You can always leave the house on the market while it is rented out. Or she can place an ad for roommate if the house is set up for some privacy

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  • 1 decade ago

    The last thing you want to do is go into foreclosure unless all your other options fail. So let's try one of the options that you want to look into. Speak to your current bank or lender that you pay your mortgage payments. Tell them that you want to refinance at the lowest interest rate possible if it's better than what you currently have. They should layout all of loan options that your mom can qualify for and explain the pros and cons of each loan option.

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  • Anonymous
    1 decade ago

    Your mother-in-law needs to speak with her lender and ask if she can do a short sale, There are investors who look for these type of properties as well so the lender may find a buyer. The bank doesn't really want to foreclose due to the loss and expense they have to go through.

    Source(s): 16 yrs real estate Title & Escrow Loan Originator/Processor/Signer
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  • Anonymous
    1 decade ago

    What state is your mother-in-law in? Foreclosure laws vary by state.

    Would your mother-in-law be willing to take in a roommate until the real estate market is better and the house is fixed up? Perhaps the roommate could also help with the care.

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  • 1 decade ago

    If she can't sell it she is just going to have to start taking in tenants or room mates. If she goes in to foreclosure that will ruin her credit and she will have trouble finding a place to live. (She might even wind up on your couch!) A contract was signed and the contract must be lived up to.

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  • Gary
    Lv 5
    1 decade ago

    Talk to the lender about the mortgage. Then your mother-in-law needs to downsize and sell out.

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  • Anonymous
    1 decade ago

    She should contact the lender immediately to see if the loan terms can be modified. If she just sits and waits for foreclosure, no one will be able to help.

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