If I understand correctly, you are in foreclosure by choice and not by need.
This is a difficult proposition.
While the foreclosure will be the most damaging factor, take into account that many creditors are only taking into account non-real state accounts in consideration of the nation's situation.
In other words, I am going into foreclosure, but by need, not by choice.
That will damage my credit, but if I keep everything else on time, I'll recover faster and I discover I will not have problems renting or buying a car, for example.
However, when I say everything else, I mean everything, I am still paying HOA fees, taxes and insurance on the property. THis will help me at the end. I only stop paying what I mathematically don't have the money for.
Now, since you are coming for financial advise and not moral advise I can tell you this.
Any monies you have left will be seen as moneys that should go to pay your debt.
Therefore whatever amount you do not dedicate to pay debt can only be used towards your own retirement or prepaid colleges, etc. Otherwise you will be required to use it to pay debt.
Some say you could store it on a bank security box, but other lawyers say you will be asked to explain what happened to that money.
I don't know all your numbers, but I really recommend you get a free consultation with a real state attorney. They will go over all your budget and net worth and give you legal options for your specific situation and state laws.
As per helping relatives, I do undertand, I send $300 a month to my parents, because they are both disabled and have no other ways to make the money. I am actually lucky they don't need assisted living yet.
But measure what are you doing for them, other than paying for electricity and food, I would think about how am I really helping. just my two cents, no judgement
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