Want to help my old parents

[Randomsaver]

My parents have an outstanding mortgage of $108K but their last house appraisal was only $98K. Their mortgage is killing them at 8.75% and could not refinance due to the appraisal.

I don't have extra cash to lend them the amount of $108K-$98K = $10K to bring down the principal to the appraised value where a refinance company can feel security of lending out the money.

What options do I have to help them?

[JulieAlbright]

How old are the old parents?

If they can't afford the mortgage maybe the answer is to move to an affordable apartment in a senior living community or somewhere else and short sale the house.

[Randomsaver]

75. They can pay the $900 monthly mortgage but just needs to be able to take advantage of a rate of say 4% max.

I am willing to help whatever I can to get them refinanced but just wants to know the options.

[Randomsaver]

I wonder if a mortgage lender would allow me to be a guarantor of a $108K mortgage given that in a little over a year time of payment at 3.5% at $950 per month, the principal would drop to $98K, which will make the debt secured by the appraised value.

[disneysteve]

8.75%! How long have they had that mortgage? Rates haven't been that high for 20 years. I'm curious how they ended up 10K upside down like that if they've been in the house for a couple of decades.

What do they have in the way of savings? What are they living on? Just SS or do they have other income?

[disneysteve]

They can pay the $900 monthly mortgage

How much is their payment currently?

[Fishindude77]

Still having a mortgage at that age is ridiculous. I'd recommend they sell at best price they can, take the whippin and rent someplace.

[Randomsaver]

8.75%! How long have they had that mortgage? Rates haven't been that high for 20 years. I'm curious how they ended up 10K upside down like that if they've been in the house for a couple of decades.

What do they have in the way of savings? What are they living on? Just SS or do they have other income?

They refinanced in 2006 at 8.75% to consolidate 2 vehicles into an existing home mortgage (purchased 2000 I think). The house was appraised recently for $98K.

They live on SS + little income here and there (e.g., mom works altering clothes from home; dad works min wage 4 days a week). They can pay $950which is about their current monthly payment.

[Randomsaver]

Still having a mortgage at that age is ridiculous. I'd recommend they sell at best price they can, take the whippin and rent someplace.

They've rented most their lives since dad doesn't know how important it is to start with a house early.

[disneysteve]

They can pay $950which is about their current monthly payment.

What's the problem exactly if they are able to pay their current payment? I agree that their rate is ridiculous and they made a big mistake rolling other debt into the home loan but at this point, if they are able to make the payment, just keep at it.

[Randomsaver]

What's the problem exactly if they are able to pay their current payment? I agree that their rate is ridiculous and they made a big mistake rolling other debt into the home loan but at this point, if they are able to make the payment, just keep at it.

I just want to get them refinanced to better rate.

I have been asking for their information way back so I can help them but they always avoid the conversation. Part of me thinks they don't want me burdened while part of it I think is just pure stubbornness to think their youngest son can help them. Finally, they gave in to the conversation this Thanksgiving.

As a son, I just can't help myself not explore ways to help them.

[FLA]

IMHO at 75, being that upside down on a mortgage, it makes more sense to me to take the loss but first get them on the list for low income senior housing, if they qualify. Some of these apt buildings are quite nice. You can also get their name on the list, and turn it down if things start going better with the mortgage. I would not offer to have my name associated with that mortgage in any way.

[autoxer]

They should look into the Home Affordable Refinance Program. When I used it, they effectively waived the appraisal. Hopefully they are eligible for it.

https://en.wikipedia.org/wiki/Home_Affordable_Refinance_Program

http://www.harp.gov/

[amastewa93]

I would have to agree with a few people on this posting. I would cut my losses and rent at this point. At the age of 75, you should be enjoying life and not be worried about paying a ridiculous amount of interest and mortgaging a home. They should be concerned with living the most they possibly can.

[Randomsaver]

I would have to agree with a few people on this posting. I would cut my losses and rent at this point. At the age of 75, you should be enjoying life and not be worried about paying a ridiculous amount of interest and mortgaging a home. They should be concerned with living the most they possibly can.

I believe if there is a couple who enjoyed life it is them.

Finishing a mortgage early by adding a dollar was not their priority -- food, clothes, resting, travelling and purchase of small items was their main happiness and that is what they have done for the last 55 years of their marriage.

Now they have cut back a bit and actually starting to make sense. But yeah, they already lived a life of enjoyment most people including myself would not have.