Please Help My Grandmother

[Fax Celestis]

So it's come to my attention that my grandmother is literally drowning in debt--sure, so is everyone else in these hard times. I think, though, she might have it worse.

She has very little income and very little ability to earn income. Her husband passed away two years back and she has not been the same since.

Today, we found out that she owes $140,000 on her house. Which isn't bad except for the fact that her house is currently valued at $68,000. She owes more than double what her home is currently worth, and things are just getting worse.

The Hairy Modfather: I apologise if I seem insensitive, but advertisements, particularly those soliciting donations to an unlicensed entity are not allowed. You may seek advice but not collect money.

Thanks for your help, Playground, both this time and every other.

[Bonecrusher Doc]

You're a good man for looking after your grandma, Fax. I'm sure you've already looked into whatever government and NGO programs are available to help her out, but perhaps if people know of anything cutting edge that's coming out to help upside-down homeowners, dare I suggest they post it in this thread? It might help lots of folks. I can strike this out if you feel it would derail the thread though.

Let's keep things positive and apolitical though folks, it's a sad enough subject as it is.

I can't think of any homebrew requests at the moment but I am eager to see what other people come up with!

[Collin152]

Ooh, I wish I had the financial independence needed to donate to you via paypal.
I'm a sucker for grandmothers.

I feel so guilty I can't even make one of my many Homebrew requests.

[Bonecrusher Doc]

I can't guarantee these are honest websites, but they are .org's rather than .com's. I don't know if your grandma would qualify for any of these programs.

http://helpforhomeowners.org/
http://www.995hope.org/
http://www.operationhope.org/smdev/hotline.php?id=1427

and here's the HUD site. I'm assuming you're in the U.S.
http://www.hud.gov/foreclosure/index.cfm

[Myatar_Panwar]

Fax, I don't really have any advice to give, (aside from that the forums is probably far from ideal to help get that 140,000 off, gonna need professional help I would guess :smalleek:) but I would just like to give a quick thank you for creating your Brawler class awhile back. I believe I talked to you back when you first showed it, but am finally getting a chance to use it, and its awesome! :smallsmile:

Seriously though man, I wish you and your family the best of luck in this crisis.

e:forgot a 0 :smallsigh:

[Yarram]

She could declare bankruptcy? I don't know much on it, but she'd be able to keep the house. She just wouldn't be able to do certain things for a couple of years. Ah well... I don't understand. Someone would have to do research on it. Not me though.

[skywalker]

The Hairy Modfather: I apologise if I seem insensitive, but advertisements, particularly those soliciting donations to an unlicensed entity are not allowed. You may seek advice but not collect money.

I'm sorry, but is this really the case? I know people have organized donation efforts via the forum before. Were these people also breaking the rules? I know money has been accepted.

I'm sorry about your gram Fax... Wish I had the money to help as well.

[Felixaar]

I'm sorry, but is this really the case? I know people have organized donation efforts via the forum before. Were these people also breaking the rules? I know money has been accepted.

I'm sorry about your gram Fax... Wish I had the money to help as well.

I think that was techincally through a third party buisness that time.

I too wish I could help, but sadly theres nothing I can do but keep your grandmother in my prayers (which I can assure you will be readily done)

[Fax Celestis]

The Hairy Modfather: I apologise if I seem insensitive, but advertisements, particularly those soliciting donations to an unlicensed entity are not allowed. You may seek advice but not collect money.

Fair enough. And, frankly, after dredging some more information out of her, things are worse than we originally thought: her water and power are about to be cut off, and about a week after that goes her phone. With a woman at her age, not having access to a phone could be fatal.

So, then. Advice?

[InaVegt]

Fair enough. And, frankly, after dredging some more information out of her, things are worse than we originally thought: her water and power are about to be cut off, and about a week after that goes her phone. With a woman at her age, not having access to a phone could be fatal.

So, then. Advice?

I don't know how to repay such debts, but there's things to consider anyway.

1. Can she move into a family member's house?
2. Are you, as a family, willing to take on debt to repay hers. (I don't recommend taking on debt to repay your own, taking on debt to repay the debt of loved ones is a strategy that, while I think it's a late resort, is valid.)
2b. Do you trust her not to get into debt again?
3. Are there any things she owns that you as a family desire to keep in the family? (Heirlooms, grandfather's war medals, and the like. I ask this because if an endebted person dies, the only way to take over such things is by taking over the debt as well.)

[Bonecrusher Doc]

Good advice from Gezina. This is tough because, even if you do have a good solution, you want to help your grandmother preserve her dignity and have as much independence as possible.
My bank has a non-profit branch from which anybody can request advice publications; here's one you can download on "Elder Care." Some of it is a little too late for this situation but I'm sure you'll find it to be of some use.

http://www.usaaedfoundation.org/family/ec01.asp

I don't know anything about declaring bankruptcy but I suggest you talk to a very professional accounting firm rather than the "Got Debt? - As Seen On TV" types.
You might also ask some of your friends who are caring for their grandparents in some manner for advice.

[Canadian]

Remove anything of value from the house before it is foreclosed and locked up.

Have her declare bankruptcy and help her complete all of the paper work.

Find out how much cash flow she has per month.

Move her into an assisted living facility or in with a relative. Whichever she can afford.

That's it.

[Zeb The Troll]

I'm sorry, but is this really the case? I know people have organized donation efforts via the forum before. Were these people also breaking the rules? I know money has been accepted.

I'm sorry about your gram Fax... Wish I had the money to help as well.I am not intending to speak on behalf of the mods or the Giant, but I suspect the difference here is that (at least on the two occasions of which I'm aware) the people benefitting from the previous donations did not seek them. They merely stated a situation and members of the forum coalesced around a resolution. In any case, the amount needed for any real resolution in this case isn't likely to be raised in a forum drive and the advice given will probably prove MUCH more useful in the long run. Having said that, I wish I had some for you, Fax. Sadly, financial genius I am not. I hope you find the answers you need, and sooner rather than later. Best of luck to Grandma Celestis. :smallfrown:

[Telonius]

Totally not a loan officer or banker, but here's what I'd consider in that situation.

Try to negotiate with the mortgage owner. Right now, no banker in the country wants to have a single extra foreclosure on their balance sheet. Written-down loans make little money, but foreclosures make none. You may be able to haggle down the monthly payment if you take out a loan with a longer term. But depending on your grandmother's age, that might not be a possibility - I mean absolutely no disrespect when I say this, but banks do look at how long the person is likely to live.

Second, do not take on any of her debt. Under US law, I'm fairly sure that debt isn't something that can be inherited - unless you start writing checks from your own account to pay her bills, that is. I believe some bankruptcy courts consider that in the terms. (But definitely get some real legal advice on that count, though; I've just gleaned that from google searches).

If the bank won't budge, and none of the other programs pan out, seriously discuss with your family and your financial advisor the possibility of her declaring bankruptcy and moving in with you or another family member. She'll write off the bad debt, you *might* be able to declare her a dependent and save some tax money (check with a tax professional on that!), and she won't be booted out on the street.