Desperately need advice on how to handle a possible forclosure on mothers home (2014, auctioned)

[Amynmesa]

Hello

I hope someone can offer me some suggestions, I am so lost and in over my head.
My dad died 2 years ago from lung cancer and supposedly any day now my mom will receive survivor benefits due to his agent orange exposure. We have been waiting on that money for a little over two years so I'm not holding my breath
My mom has early on set dementia and has been living by herself for about six months, mostly because dementia patients can become very mean and she actually asked us to leave when my brothers and I suggested she give one of us power of attorney so that we could make sure her finances were being handled.
I recently found out she has been delinquent on payments for a line of credit her and my father took out. We received notice that the house will officially be auctioned off in August because of this. It kills me because her house is worth a little over $220,000.00 and she only has about $80,000.00 to go until her mortgage is paid off. It looks like the balance of the line of credit is somewhere around $40,000.00 but her monthly payments were like $300.00 and it wasn't that she or one of us couldn't have paid them, she just forgot. I'm so scared for her and desperately want to save her home.
Any suggestions would be sooo greatly appreciated.
P.S. She currently doesn't have any where near enough money to pay the full balance on the line of credit. My brothers and I pay her utilities and with her social security (she is 73 yrs old) she is able to pay her mortgage and other bills but not putting anything away into savings. She has a 401k that doesn't have a lot of money in it, but if necessary we can cash it out as a last resort to resolve this. It scares me to think of her living check to check with no savings, especially at her age and with current health conditions.

Thank you
Amy

[20yrsinBranson]

Originally Posted by Amynmesa

Hello

I hope someone can offer me some suggestions, I am so lost and in over my head.
My dad died 2 years ago from lung cancer and supposedly any day now my mom will receive survivor benefits due to his agent orange exposure. We have been waiting on that money for a little over two years so I'm not holding my breath
My mom has early on set dementia and has been living by herself for about six months, mostly because dementia patients can become very mean and she actually asked us to leave when my brothers and I suggested she give one of us power of attorney so that we could make sure her finances were being handled.
I recently found out she has been delinquent on payments for a line of credit her and my father took out. We received notice that the house will officially be auctioned off in August because of this. It kills me because her house is worth a little over $220,000.00 and she only has about $80,000.00 to go until her mortgage is paid off. It looks like the balance of the line of credit is somewhere around $40,000.00 but her monthly payments were like $300.00 and it wasn't that she or one of us couldn't have paid them, she just forgot. I'm so scared for her and desperately want to save her home.
Any suggestions would be sooo greatly appreciated.
P.S. She currently doesn't have any where near enough money to pay the full balance on the line of credit. My brothers and I pay her utilities and with her social security (she is 73 yrs old) she is able to pay her mortgage and other bills but not putting anything away into savings. She has a 401k that doesn't have a lot of money in it, but if necessary we can cash it out as a last resort to resolve this. It scares me to think of her living check to check with no savings, especially at her age and with current health conditions.

Thank you
Amy

Go to court and ask for conservatorship due to her being mentally incompetent. Then you can negotiate with creditors and hopefully it is not too late to repair the damage.

20yrsinBranson

[Modification Specialist]

As of January 2014 there are new requirements for Mortgage servicers, cannot start a foreclosure until 4 months after a borrower falls delinquent. If the borrower does not submit an application for a loan modification, the foreclosure can begin.

Even if a borrower is more than 120 days delinquent, if that borrower submits a complete loss mitigation application before the servicer has made the first notice or filing required to initiate a foreclosure process, a servicer may not start the foreclosure process unless:

• the servicer informs the borrower that the borrower is not eligible for any loss mitigation option (and any appeal has been exhausted)
• the borrower rejects all loss mitigation offers, or
• the borrower fails to comply with the terms of a loss mitigation option such as a trial modification.

If a complete application is received more than 37 days before a foreclosure sale, the servicer may not move for a foreclosure judgment or order of sale, or conduct a foreclosure sale.

Have you started a loan modification? You have a valid hardship. Does you mother have $968 in SS benefits (bare minimum $726) per month?

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