My mother-in-law passed away on Tuesday. Now, my father-in-law has mortgaged the house & faces losing it?
Four years ago she was diagnosed with breast cancer. Her doctor prescribed a new experimental drug that was $1000/mth. For the last few years, her medicine and medical bills have eaten it all. Now, he owes $95,000 for a house that was paid for, his bills outweigh his income by $1400/mth. and he’s lost her disability. We’re not sure how to help. He has it on the market, except with the market as bad as it is, and the house being so far out, we know that he more than likely will not sell it. It is on a lot of old farmland and he has lots of tools, equipment, etc. But, we’re not sure how much anything is worth or if it would be best to get an estate person to help. But again, the money is an issue. Plus, we’ve even considered filing bankruptcy, but would this save the house or hurt even more in the long run aquiring a new home. We just don’t know what to do because we are strapped ourselves. Plus,the company he has worked 30 years for was sold last year & he lost his retirement
March 27th, 2009 at 6:39 pm
Things are not as bad as they may seem. Senior services for those with little are often better than those you can pay a reasonable amount for. I know this sounds terribly socialist and a lot of people’s pride won’t allow them to take advantage of the housing and healthcare available. But I recommend having a conversation with a financial advisor who specializes in the elderly and/or estate planning. They will have unique insights about these programs.
I’ve heard of people giving away their house and holdings just to qualify. Sounds like your father-in-law is already there.
But this can wait a while so your spouse’s family can bury their mother.
Good luck!
March 30th, 2009 at 1:42 pm
He can file bankruptcy. Keep in mind that any of the bills for HER medical care may have died with her.
Your first job is to see an attorney. You could start with an estate attorney, or with a bankruptcy attorney - or a firm that has both. They will help direct you. The bank will lose money on the house if you sell it, it is in their best interest to work with you. You may also want to contact the bank, and let them know about her death - they may be willing to let him skip the December payment on the loan in this situation.
If you do decide to file bankruptcy, you can keep the house out of the bankruptcy in most instances — but you need to think about whether or not you want to do that. If you think that the house is a burden, and that it may be time to think about dad moving into an assisted living facility or something like that (I don’t know your situation) you may find it easier to give the house up in the bankruptcy — but the attorney will help you with making those decisions.
April 1st, 2009 at 10:15 am
“It is on a lot of old farmland and he has lots of tools, equipment, etc.”
you just answered your own question. sell the land and keep the house with a few acres around it.