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My retired and disabled parents own a townhouse in CA worth about $455k and they owe about $249k on it. I am trying to help them stay in it but they need to get rid of about $30k in debt (half car loan/half CC debt) to afford to keep paying their mortgage. Currently they are up to date on payments. They have no other assets.
Someone mentioned a HELOC might work to pay off their debt. They have excellent credit. Would this work? Where should I go and what should I look out for?
Edit: they refinanced a couple of years ago at 3.99%.
They could file Chapter 7 but that's not their style. Still, one has Alzheimer's and they only have a couple of quality years left together and they want to spend it in the home they bought together.
Since you say they only have a few quality years left and it sounds like their home could be in jeopardy, I would suggest a cash-out refi. Rates have gone up, but not that much. If it makes their last few good years stable, it would be worth paying a little more in interest.
Since you say they only have a few quality years left and it sounds like their home could be in jeopardy, I would suggest a cash-out refi. Rates have gone up, but not that much. If it makes their last few good years stable, it would be worth paying a little more in interest.
Thanks. Can you provide a link or more insight into a cash-out refi? Are you just meaning do another refi and grab a few grand from it like they did a couple of years ago?
retired and disabled parents own a townhouse in CA worth about $455k and they owe about $249k on it.
They would probably be better off SELLING the house and the car...
then investing the rather small nest egg and looking for senior housing.
The disability puts them at the front of the list
My retired and disabled parents own a townhouse in CA worth about $455k and they owe about $249k on it. I am trying to help them stay in it but they need to get rid of about $30k in debt (half car loan/half CC debt) to afford to keep paying their mortgage. Currently they are up to date on payments. They have no other assets.
Someone mentioned a HELOC might work to pay off their debt. They have excellent credit. Would this work? Where should I go and what should I look out for?
Edit: they refinanced a couple of years ago at 3.99%.
Sell the car. If they are retired and mostly staying at home without commuting needs, a $15k car loan is absolutely unnecessary. Buy a reliable car for $4k or $5k.
My retired and disabled parents own a townhouse in CA worth about $455k and they owe about $249k on it. I am trying to help them stay in it but they need to get rid of about $30k in debt (half car loan/half CC debt) to afford to keep paying their mortgage. Currently they are up to date on payments. They have no other assets.
Someone mentioned a HELOC might work to pay off their debt. They have excellent credit. Would this work? Where should I go and what should I look out for?
Edit: they refinanced a couple of years ago at 3.99%.
Thats not paying off debt....its shuffling it around.
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