tough situation need advice

[jeffro14]

I am in a bad situation and don't know what to do. I am a married school teacher who has always had good credit and been responsible with money. My problems began about 6 years ago when my father took another job out of state. He felt that he should hang on the family home in Florida so he asked me to put my name on the mortgage so he could buy another home in Mississippi. He had a good deal of equity so it seemed like a safe deal. I also decided to buy a condo a few years later and I grossly overpaid for it. Well, out of necessity my dad took out equity loans in my name to cover some debts. Now I am left with a situation of being over 100K upside down in my condo currently and at least 60k upside down in my parents house. Further complicating matters is the fact that my dad lost his job and my wife (who is not on my mortgage thank god) wants to buy a house. My dad has also owned a beach house for many years and has some equity in that. He doesn't want to sell it now because the market is so down. I am truly at wits end and have no idea which way to turn. any advice would be much appreciated!!

[jIM_Ohio]

List each house probable resale value
List amount of each debt you owe.

How bad is it, numbers help...

[Seeker]

I am in a bad situation and don't know what to do. I am a married school teacher who has always had good credit and been responsible with money. My problems began about 6 years ago when my father took another job out of state. He felt that he should hang on the family home in Florida so he asked me to put my name on the mortgage so he could buy another home in Mississippi. He had a good deal of equity so it seemed like a safe deal.

Are you a part owner or a full owner? Who is paying the mortgage (you or your dad or is it split in some proportion)? In the last paragraph (I separated out these for clarity ), you are still describing this house as your parents' -- which leads me to believe that you're paying it for them and that possibly they've taken advantage of that.

Who, if anyone, is living in the house now? Is there any income from holding the house (ie renters), that at least partially pays the mortgage? Do you pay in entirety? Is it not occupied at all for the last six years?

If you are full owner, sell. If are a nominal owner (not on the title), and are paying the the mortgage, you may need to stop payments and let if fall back to the real owners.

You should tell your Dad that you cannot afford to take on any more loss and it needs to stop. Your own home is at risk. Your future is at risk. You will probably need to sell that place at a loss, but at least you won't be paying on it anymore.

Your wifes desire to purchase a home is quite impossible under your circumstances, unless she can afford it apart form the financial mess you're in.

I also decided to buy a condo a few years later and I grossly overpaid for it.

Without numbers we cannot determine how to help you. You need to define the numbers of each of these entities, debts, who is titled for each, and make some decisions from there. Your income: can it support you and your wife in the condo if you did not have to pay your folks house?

Well, out of necessity my dad took out equity loans in my name to cover some debts.

That's not quite legal, but ultimately it does happen. You need to prevent it from happening again. If your Dad holds pertitent information such as your ssn, dl#, etc., I advise you to look into "freezing" your own credit. It prevents you from getting credit without unfreezing, but it'll prevent your Dad from doing things in your name. Stop the leaking before it gets worse. Especially if he's out of a job.

Now I am left with a situation of being over 100K upside down in my condo currently and at least 60k upside down in my parents house.

Further complicating matters is the fact that my dad lost his job and my wife (who is not on my mortgage thank god) wants to buy a house.

My dad has also owned a beach house for many years and has some equity in that. He doesn't want to sell it now because the market is so down. I am truly at wits end and have no idea which way to turn. any advice would be much appreciated!!

List all the dollars, interest rates of these debts and periods remaining on them. List your income and expenses. Do you and your wife live in the Condo?

Sorry to say, but frankly if your Dad holds equity in a Beach Home and does not want to sell, and you've been tackling the mortgage of your folks house alone, and title is not in your name, and he's "borrowed" under your name, IMO he owes you. He helped put you in this hole. His house in Mississippi, is he needing money for that too?

The economy is not great, and I understand that, but you are not looking out for your family (yourself and your wife's) financial well-being, both now and in the future by trying to help him.

I understand that he's your Dad, but under no circumstance does that give him the right to steal from you (which is what he did when he borrowed under your name).

Take back control of your finances; stop him from digging the hole deeper in your name. Concentrate on fixing your own financial situation.

[PetMom]

This is a situation some might find themselves in: you try to help out a family member by intertwining some realty.

Yes, you helped willingly with it, but the part that you did not is something you need to perhaps search out (the equity loan or loans).

I did not know an equity loan was that easy to get in another persons name. And if it is equity loans (not quite sure if you mean't more than one) then this is getting to be a bit much without even consulting you first - we do not have the full details on that.

But the excellent suggestion from the commenter to lock down your personal info is what I would do.

And maybe even make some calls to whoever gave your father an equity loan in your name - maybe you both have same name and this was easy.
They should have some explaining to do. Was there not an office visit to a title co. or attorney? or even a notarized signature going on these equity loan documents? I don't know if there are now companies that lend out equity loans with a phone call and ssn#, if so that is alarming.

The first thing is to stop him or anyone getting any more loans in your name.