foreclosure in New Jersey

[ruttster]

My parents are both on social security. They have no pensions or 401k and no savings. They had a 6 month loan modification with HFC in New Jersey. The 6 months is over and they are back up to 10% interest. They can not afford to pay anymore and HFC has no interest in continuing modification. What would be their best course of action? What are the reprecussions? They don't have money for a lawyer. neither do I or I would help them. Thank you in advance.

 

[OHRoadwarrior]

Have they looked into a reverse mortgage?

 

[nextwife]

Have they considered houseshare? Find an elder roommate to rent a bedroom, like the Golden Girls? I know a number of people who have done this. How old are your parents? Could they be working, at least part time, for extra income? Many of our friends are social security aged and still work full time.

Part of retirement planning involves downsizing housing costs before one stops working. Have they considered selling and finding something more within their budget?

Social Security was never intended to provide the sole source of retirement income. Becoming older is not a sudden change of circumstances one cannot predict.