Get a lawyer and plan a bankruptcy. Hurry or there will be no docket space left.
Sell the house, pay all the bills, cut up the credit cards and downsize.
Based on these numbers you wouldn’t have enough equity to qualify for anything. Use the AARP calculator to see but I don’t see anything you can do with this.
I understand the theory of Reverse Mortgages — you are essentially selling your house to the bank and they collect when both of you go to the Bye and Bye. But I think you need to own the house free and clear.
The biggest downside I have heard of is the rates aren’t very good. Of course, you are leaving nothing to the kids but I have always thought that it is everyone’s duty to coordinate kicking the bucket with hitting zero in all assets.
Best of luck to you FRiend.
I think it is worth a look for you, if you are old enough.
i am very sorry for your circumstances. I am trying to avoid that by paying on my mortgage early (will be paid off next year about this time). But there has always been the chance I get caught house rich and cash poor — everything is a risk.
God Bless you...you still have options...try reselling products on ebay to bring in extra cash....We did that when times got tight and my wife still does it...
BTW, I met Clark Howard today at the Roswell, Ga Walmart...he was doing a charity raise for toys for Christmas, broadcasting from the front of the store...FYI..I donated a toy....
A reverse mortgage is essentually selling your home in order to receive a monthly payment. At the end of the mortgage period, they own your home and you stop receiving the check.
The underlying assumption, the thing that the mortgage company does not want you to know, is that the “gamble” you are making is that you will not need to live in the house at the end of the time period.
That could be possible because you have made other living arraingements such as relatives, renting a smaller place, purchasing a trailer, in a nursing home or possibly, that you will be dead before the end of the term.
In exchange, you receive a monthly amount.
The VALUE proposition is in the eye of the beholder. Some would rather do a reverse mortgage than to lose the house due to failure to pay and forclosure. Some are so emotionally attached to the house that they can not fathom the idea of leaving.
As always, get multiple bids, sound legal advice, and talk with a tax attorney about possible ramifications.
I pray that FRiends will give you good advice and lift the financial burden off your shoulders.
See if you can get another regular mortgage on your house.
Figure enough to pay off the CC debt and to survive on until your SS comes in- and to pay the payments on the new mortgage. Figure carefully.
Banks should offer “bridge” loans to people in your circumstance as there are many unemployed near SS age with assets (I’m one).
Check welfare office- heating help is pretty generous- and keep looking for work.
Selling your house might be an option too, but only if rents are much lower than your house payments. I know the rents in my area are more than our mortgage.
Pay your mortgage first. Every other bill is second to your mortgage. You can't just let the bank take 85,000 in equity from you. It's all your savings, and you will get a job someday.
Coupons, Coupons, Coupons. You will be surprised on the small amount money you can spend for food. Buy only sale items and use coupons.
I cut my grocery bill for a family of five from 150.00 to 50.00 when we went through a hard time. It wasn't what we wanted to eat, but no one went hungry.
Default on your credit card if necessary. Everything else should be paid first before your credit cards.
Good luck.
I have been a professional real estate investor for 37 years. My analysis indicates that a typical home must appreciate by about 6% a year over time to be worth owning from an economic standpoint. Sell the house, quickly. To do that, price the house 3% under the current competition in your area, assuming average condition. Since almost everyone overprices their home by 3-5%, you will be properly priced.
Even in a poor market, I did this last winter with a house I wanted to unload. I analyzed the competition to be priced at $259k for a similar house. I priced mine at $249.9k. I had 3 offers in two days and closed it 32 days later at $252.5k.
Calculate the cost of staying in the house compared to the rental cost of a suitable apartment, duplex or small house. Taxes, insurance, mortgage payments, maintenance, lawn care and in some cases utilities. For example, my house was mostly frame and required painted about every 5 years. Cost to paint, $2,500. Cost per month just to keep the exterior of my house painted, $45.
It is quite unlikely that your house will appreciate by 6% annually anytime soon. How much more do you want to lose? Sell the house now. And good luck to you.
Oh, and plinyelder....Reverse mortgages are a ripoff. The fees are ridiculous. Reverse mortgages must have been created by a pawnshop owner. Run away.