Thank you so very much. Every little bit DOES help, and we will take all the prayers we can get. It means the world to me, truly.
Since you want ideas, I’m wondering about why you’re looking to raise enough money to pay off the mortgage entirely. Presumably both you and your sister have some money coming in each month? So once you’re on your own, what will you be able to afford in terms of housing each month? I imagine that you might need to raise an amount less than the total mortgage payoff. That’s gotta be more achievable than raising the whole amount.
I have no income at the moment. My plan for this year involved obtaining some programming certifications and learning to be a software tester, but that is now on hold.
This town our home is in is very much not ideal, I’ll admit that. We’re in the middle of the Florida panhandle, pretty much in a swamp, and an hour from anything that can be called a city. There is very little work here that I can physically do, my Multiple Sclerosis has placed several limitations on me that I can’t ignore any longer. I apply to every opening, every company that seems the least bit promising, but so far, no dice. This town is very insular, most people who live here grew up in this county, and they know people who know people.
My sister works full time in Chattanooga, TN. She’s raising my niece on her own and doesn’t have anything extra. IF we are able to obtain or continue a mortgage, her plan is to move down here to take over the household expenses (with my niece and my mother) until I am able to either obtain disability benefits or become employed in a position that I can physically handle. That’s why I have been looking into professional work that I can do from nearly anywhere.
For me alone, my monthly output would be very modest, always has been. Provided I could obtain a similar homeowner’s insurance policy, yearly output for that and property tax is approx. $2500. Utilities are efficient and with only me, would cost little. If it means keeping my home, I will take any paying work I can get, my own health be damned.
Our financial goals are manifold, and while I very much understand that raising $50k is a stretch by any account, we could use every dime we can get our hands on. The ideal option would be paying off the house in full. The second best would be somehow obtaining a mortgage on our own, payments would be reasonable because we’d be borrowing only about 1/3 of the home’s value.
The option we’re not willing to accept just yet is letting the house go, but that will leave me needing to find a suitable home for myself, and faced with the task of cleaning out this house and moving, neither of which I am able to do alone. This house also won’t sell quickly, its bones are strong and it’s on a nice chunk of land, but it needs a lot of cosmetic improvements and a new roof, probably a new septic drainage field within a couple of years.
Then I also have to consider that we may not have access to funeral or burial benefits in time, and that I won’t have immediate access to my father’s assets in order to pay out of pocket for those services.
To be perfectly honest, none of this could have come at a worse time for me personally. But it isn’t about me, I’ll be ok. I am fighting as hard as I can to make sure that what my daddy worked all his life to get and maintain doesn’t go to waste. Any option I can find is going to require some money, and so every little bit does help.
Could you let go of the idea of a real brick home, and look into a tiny house when your father dies? You could do ICT work from such a house, and you could move the house to where your sister lives. What Is The Tiny House Movement? Why Tiny Houses? | The Tiny Life
It sounds like where you live isn’t the best place for you; few job prospects and, given that you said you’re an hour from the nearest city, I doubt there are medical facilities available to meet your needs. Honestly, I think you should emotionally detach yourself from your father’s house and consider moving. Would your sister be amenable to you moving in with her (perhaps in a larger apartment or house)? Based on a quick read of the Wikipedia article, I’ll bet that you’d find it easier to find a job in Chattanooga (with a population of perhaps half a million in the metro area).
If that’s what it comes down to, that’s what will happen. I am not afraid of making such a decision, and I understand it may be a possibility.
My sister rents the house that she and my mother and niece live in. There is very little space just with the three of them. I would be unable to live with my sister unless she IMMEDIATELY changed 20 years of habits that involve ignoring and walking on dog poop in their bedrooms, and other similar disgustingness.
You’re right in that Perry isn’t the ideal place for me. But I’ve lived here off and on for 15 years and it’s not half bad, either. There is a new hospital with a neurology team and a MRI machine. There is little work, true, but that’s not insurmountable.
I guess I will clarify that it’s not only me that is very concerned with keeping this place, it’s my whole family. I just happen to be the sole Doper 
It has a great deal to do with my father’s legacy, his peace of mind. It makes no good sense to us to throw away what would amount to about $100k in equity for want of another solution. As of this moment, we HAVE posession of a safe, comfortable home for me, and my sister and niece should they ever have need of it. That’s a security I would have to be insane to give up without a fight.
Trying to find another home for me that is ground floor, no stairs, accepts dogs (if I CAN keep his dog, I will absolutely keep my daddy’s dog!), when my income generating ability is compromised by my health status and I receive ZERO state benefits will be, to say the least, difficult.
Having to do all that plus clean out this home plus bury my father plus things I haven’t even thought of yet all in the span of weeks…I am not sure I can handle it.
It’s a real dilemma. I do understand that we may have to give it up, but until the day comes when a decision MUST be made, I am going to do everything I can to keep our best option on the table.
I LOVE the idea and concept of tiny houses, and have spent hours poring over photos and designing mine in my head! Something like that may be just the ticket for me if it comes down to it, I really live by modest means and I would be very comfortable.
But it again comes down to being very unwilling to give up $100k+ in equity on something we already have, if it can be helped at all. We are not devoid of assets entirely, we have several high-ticket items that will be sold in the coming weeks and some modest savings. Those things will be what essentially saves my life in the event we cannot find a way to keep what we have - so I prefer to wait to sell them until we know they can make a difference. Does that make sense? Like we sell the Harley when we’re within $10k of finding our solution.
I am certainly not a lawyer or accountant, but if someone has $100K in equity, why couldn’t the house be put into a trust? Furthermore, couldn’t your dad’s beneficiary be that trust and thus help pay the mortgage?
I don’t understand why you’d lose the equity in the home if you decided to move. Couldn’t you sell the house and pocket the equity? What are the terms of the mortgage?
Because this is not a traditional mortgage, and there is a specific caveat in the mortgage note that specifies that it will not be transfered by any means or reason without specific written permission of the seller. Further, it’s equity, not cash in hand with which to pay the mortgage note. We’d have to sell the house or refinance the entire value of the property to use any equity, which would defeat the putpose.
My sister and I, along with my niece (13 yrs old) are the sole beneficiaries to his estate. We do not have the wherewithal to establish a mortgage loan in our names, else this would be simply handled. If it were possible (and we have yet to explore all options, so it may well be) we would obtain an insured bank loan in the amount of the payoff + fees and taxes and take the original sellers out of the equation. As it stands, with the current note on the property, our most likely outcome will be that they accept a lower lump sum payoff, if they are willing to work with us at all. We are waiting to hear from them on that.
I’m guessing because of the rent-to-own provision, the title isn’t in their name.
If I’m right, Time Like Tears, you should talk to the owner & see if you could sell it, pay them the remainder of the mortgage & keep the rest, which is what would have happened had you paid the mortgage off. Alternatively, see if you could get a swing loan from a bank to do the same. Maybe you could get a place near your sister, but not with her.
We’d get some, sure. The value of the land alone has risen. But being able to pocket equity relies on being able to sell in the first place. We’re not in a good location for home sales at all, the house needs several improvements, and if we were to sell it as-is, there’s no telling how long it would be before it sold. I can’t bet on a ‘someday’ like that.
As things stand today, upon my father’s death, the full balance of the mortgage comes due and payable in full. Otherwise we will be foreclosed on. That’s why our first step was to contact the sellers, and hope they will be willing to work with us. It’s possible, there’s 15 years of on-time payment history to consider.
Dad’s kicking himself now for not refinancing when he retired with a traditional mortgage company. Hindsight’s 20-20, but his options now are much fewer. Dying men on Social Security income alone are a bad credit risk.
What we need from the owner/seller is a quitclaim deed - which to my understanding means that we essentially have a rent-to-own arrangement. The wording on the note says “This is a Purchase Money Mortgage”. The checks are sent directly to the owners, with a handmade amortization schedule to help us keep track.
And if no other solution can be found, an attempt to sell the house will be made BEFORE it can be foreclosed upon. I do need to have the property appraised, that’ll come in the next couple of weeks I think.
I’ll say again, it makes no sense to give up when it may be possible to keep what we have. If nothing else, Dad wants to die here, in his own home, that he worked his ass off for. I think he deserves that consideration. That could happen next week, or it could happen 10 months from now, or it could happen years in the future! Stranger things have happened…and I have no intention of giving up ANY hope for the best outcomes until they put him in the ground.
Also consider that these decisions are not mine to make on my own. It is the consensus of my whole family that the goal is to keep the house and land if possible. That is what I am working toward, by any means I can find. I will continue to try to find options, raise money, anything I can do until the consensus concludes that we need to pursue other options.
I’m not sure that needs to be disclosed. If his SS is enough to qualify for the mortgage, he may be able to get one.
Who are you (your dad) making payments to, the previous owners, or some ‘regular’ mortgage company? If the former, I’ll bet they’ll work with you.
Maybe not, and he’s been collecting information on companies that may extend a small mortgage loan, based on equity collateral, in all three of our names.
Payments directly to the owners/sellers. A couple in their 80s. Business relationship at its friendliest, but it can’t hurt to ask, and so we have.
And all you guys - it’s a lot to think about and selling the house and walking away may be our best and only solution. But that’s quite frankly the EASY solution. I know how that would go, no advice needed there. I would ask for the time to clean out the house and move, and it would go on the market near immediately, and we’d be broken hearted, but we’d get over it. We’d receive whatever was left after the current payoff and any other fees, which may not be much at all when all is said and done.
I appreciate ALL advice, you’re all helping me consider all angles, including the doomsday plan. But doomsday comes much easier than fighting for the ideal outcome, in shitty situations like this one. I’m trying to avoid it if I can.
Don’t take this the wrong way, but I think you’re jumping the gun a bit. I think you’re panicking (& rightly so - you’ve just been hit with a lot) but you’re stated that you’ve already reached out to the owners/sellers/mortgage holders but haven’t heard back from them yet.
When you talk to them, explain that you’ll continue to make payments regularly for now & that there may be a slight delay when the time comes to setup the estate but that you will make them whole once you have access to the money from that. Ask about a discount for a lump sum payoff; present value of money & all that. If I were them I wouldn’t sweat a slight delay over setting up an estate after 15 years of a good tenant if I knew the situation.
Take a deep breath, then let us know what they say once you talk to them.
You need for a lawyer to look at that “Purchase Money Mortgage” contract. If you can’t afford one, there may be some legal aid available.
You don’t really have a mortgage if (and this sounds like what you are describing) your payments aren’t building any equity. You have a cash loan secured by the house, and I don’t like the sound of that full outstanding amount being due on the borrower’s death.
You can talk to a banker for free. Ask if there is any way to obtain a conventional mortgage in your situation. Bring a copy of the contract.
Panicking slightly, yes. But I don’t think I’ve done anything prematurely. My dad could pass away tomorrow. It really is that agressive and that advanced. I am the only one here with him right now, and his only caregiver for now, and I have to say that it doesn’t look very good at all.
I have never dealt with the owners of this house before. Never been any of my business until now. I know my dad is loathe to ask for any help, but he has reached out to them.
I sprang into action because I will need to come up with some money regardless of the outcome with the house. I won’t touch anything I’ve been given until I absolutely must, but the day my father passes away is the day I may even have to return his last Social Security check - my support disappears. The few hundred we have been given can, if we never receive any more, feed me for several weeks. You know? I still hope to be able to contribute to the house payoff, though. If I can help it, that’s where all the money will go.
[QUOTE=FeAudrey]
You need for a lawyer to look at that “Purchase Money Mortgage” contract. If you can’t afford one, there may be some legal aid available.
You don’t really have a mortgage if (and this sounds like what you are describing) your payments aren’t building any equity. You have a cash loan secured by the house, and I don’t like the sound of that full outstanding amount being due on the borrower’s death.
You can talk to a banker for free. Ask if there is any way to obtain a conventional mortgage in your situation. Bring a copy of the contract.
[/QUOTE]
I agree, and it’s now on my list, thank you. It does seem a little weird, doesn’t it? For such a large purchase, to have only a two page contract, cash deal…I think there is probably some legal recourse for us in the event of untimely death, and I should go find out asap.
Not sure how willing banks are to lend based on equity in collateral alone, and as you say - we may not legally have equity at all. But the worst they can say is ‘no’, so I will work that into my schedule as well.
Thank you both! Good advice all around.
If you don’t have work, don’t anticipate available work where the house is located, and your Dad’s social security is your only support, I’m unclear as to how you anticipate being able to keep the house? How will you pay a mortgage? Or gas bills? Insurance? Groceries?
You keep saying you want to keep ‘what you have’ but if it’s mortgaged ‘you’ don’t really have it, the mortgage holder does. Or am I confused here?
Because I feel confused.
The reason I don’t currently have work or income is because I chose to leave the workforce to be a full time caregiver for my father. The job outlook here is not great, but I have driven to Tallahassee daily for work and would do it again. It’s kinda just what you have to do here. I’m not incapable or unwilling to generate my own income, dad and I came to an arrangement when he started to get very ill and for the time being, I am satisfied with it. It’s difficult, and I would rather not abuse my own body any more, but I will do whatever I must, while working toward better solutions.
It’s also not just me here. My father is the mortgage holder. His goal is to see the house end up owned jointly by my sister and myself, or have a clear plan for doing so, before he passes away. It is what we have in that we live here, we’ve established residency here, I do business here (when I am doing business), and that it’s mostly paid for.
Thinking about our combined durable assets, I believe we can come up with about $30k. I don’t think that will be enough to satisfy the seller as a lump sum, but that’s solely with what we have right now. There is no life insurance, there isn’t much retirement savings for my dad’s part.
If there can be no payoff, but there CAN be a mortgage in my and my sister’s names, my sister plans to transfer here and take over the household expenses until I am able to get back on my feet. Our current monthly output is something like $1000, and that would only go down. We don’t need cable, we don’t need to have 5 computers up and running at all times, we don’t need a landline, etc. That’s all dad’s stuff, and we’d adjust accordingly. The yearly combined expenses of homeowner’s insurance and property taxes totals about $2400. Between my sister’s very nice income, my mother’s income (she works from home, can telecommute from anywhere), and the fact that I’ll be free to pursue both schooling and employment after dad’s gone, we have the maintenance of the household more than covered, if that’s what we need to do.
That $30k figure up there gets drastically reduced by how soon my dad’s body gives up the fight. He’s already scrambling to pay off credit cards and his last financed vehicle. If his service-connected disability benefits don’t come through in time, we’ll have to pay burial and funeral expenses out of pocket. Settle up any outstanding bills, etc. How much we have at the end DIRECTLY depends on how much time we’ve got left - and there’s no way to know.
I hope everyone will keep in mind - three weeks ago we were, for the most part, going about our daily lives as usual. I was to return to college May 6th, Dad was looking forward to having his Medicare kick in so he could get his belly FIXED. My plan was to hang around with him until I could be sure he was on the road to recovery/use my time living rent free to complete my degree. He was going to get well and have plenty of time to pay off his own mortgage over the next ten years. No one ever expects the kind of news we got. It couldn’t have come at a worse time in our lives.
Again, this isn’t for me alone. All three of us believe that this house and property are worth far more to us in the long term as an asset than as whatever results from selling it now. Over $100k paid in over 15 years isn’t something to throw away. I don’t have any other place to live, and would need money to obtain one in any case - and there’s no guarantees on when we’d see any profit from a sale.
I feel like I keep repeating myself - I know I’m asking a lot from the world at large, and will be as transparent in my goals and intentions as possible, but I can’t see any reason it should be so farfetched that we, as a family, see incredible value in owning a home, and will fight for it as long as fighting makes sense.