guardianship/disabled adult

[pjaystevens47]

What is the name of your state? Florida. When my father died, he left my brother, who is 44 yrs, old and mentally retarded. It was decided by my 3 sisters and myself that i would move from NY to Fl. to care for him. My sisters signed their shares of Dad's home over to me, and my brother kept his share. I was advised to get guardianship, so that I could refinance the home to consolidate debt, so I could free up funds to make much needed repairs to the home. (the debts are credit cards that I used before moving here and after moving here to pay for living expenses until I found employment). I file for a mortgage, which was approved, but I needed to get permission from the court to do this, because my brother owns 1/5 of the property. Now I am told that since the cards are my debt, it is not going to be approved by the court..it's not in my brother's interest. What I don't understand is, I own 4/5 of the house and the refi is for 80% of the value...in essence, the part I own, so why can't this be done. I have A+ credit, but it is at the limit, so I need to consolidate to free up funds to fix things, to benefit my brother. We have a 20 year old mobile home with an air conditioner that is the same age, and only working by the grace of God. We need a new roof, and also my brother would like a new front porch, none of which can be done the way things are. Is there any way around this?

 

[The It]

If the loan officer wants to debate the best interests of your brother, bring him in to your next meeting and have your brother explain his desire for a front porch. If that doesn't work, get legal control of your brothers' interests through a power of attorney. If your sisters have your back, then it should be no problem.

 

[nextwife]

I do NOT believe a Power of Attorny can be granted by the brother! As the courts have granted him a guardian, he is considered incompetant io act of his own behalf. He can't act to give a POA.

Can you seperate out any of your non-repair debts and refinance the mortgage bringing in only the repairs? The court seems to feel that other debts are included here. Offer the case to the court with a breakdown of the costs of repairs and what is needed? Leaving general CC bills out?

 

[stealth2]

Good idea, nextwife.

 

[pjaystevens47]

The problem is, before I moved here to take on the care of my brother, my debts were not this great. about 50% of them were incurred moving here, and living here with my brother until I found employment. This actually was a benefit in itself, to my brother, since he would have had to move from his home if I had not moved here. He lived here with my parents for 20 years, and wasn't happy living with my sisters after Dad died. They live in cities where he couldn't get out for walks. I have to get rid of the credit card debt..a new mortgage would get rid of about $500 per month in payments so i can then take loans to finance the repairs. The old mortgage is $180 of this. Also, when I went to the lawyer with my borther, he told me I couldn't get POA because my brother couldn't legally sign it to me. I was advised that guardianship would allow me to sign for him.

 

[stealth2]

Once the court approves the refi and you get the money, I don't think they can tell you how it must be used.

 

[pjaystevens47]

There in lies my problem. I have to show the refi benefits my brother, but the credit cards are in my name, so it looks like it only benefits me. But without the refi, I can't finance any of the work. I have a good job and make good money, but it is tied up with paying the cards and the bills. My brother gets my Dad's SS check. I make 3 times what he gets. I tried to finance a new air conditioner-I was denied because I was at the limit of my credit-I have good credit, just too much. What gets me is we aren't talking millions here; his share of the house is $8000. And I have a will that states if I die my share goes back to my sisters for the benefit of our brother. Improvements to the house would increase his benefit.

 

[stealth2]

I know I'm not making myself clear, so let me try again. What percentage of the refi is for your debts vs. the necessary repairs?

 

[pjaystevens47]

Sorry, the refi is for $30000-$4000 is the balance on the existing mtg. the rest is for credit card debt. This refi will also include closing costs, the cost of the survey and appraisal, the property taxes and homeowners insurance. Right now we pay the taxes and insurance. So to the court it would look like it benefits only me, but it would free up out-going income and put me in a position to be able to finance repairs. What I need to know is: is there a way to show the court that refinancing would be in the best interest of both of us. I have statements from the card companies showing my balance before I moved here. Also my sisters know that I lived on them for 2 months while we got settled, and while I looked for a job. I used them to get utilities on, and to buy groceries.

 

[stealth2]

Okay, but what you are going to represent to the court is that the refi is needed to do a variety of repairs to the home, correct? Get folks out to give you appraisals (for ALL potential repairs) and present those to the court, adding in the amount for the balance of the mtg and the closing costs.

 

[pjaystevens47]

The refi is to consolidate the credit card debt. Right now I pay out about $550 plus the existing mortgage of $180. This puts me at the limit of debt versus income ratio. The refi would consolidate this into a $300 per month payment, freeing up aproximately $500 per month, improving the debt to income ratio. Then I can get personal financing to do repairs. How can I show the court that this will benefit him in the long run? Would letters from our sisters help? They know that I gave up the life I had to come here so he could live in his own home. They know that I would never do anything to hurt my brother, but I have to show the court that I am not trying to use him to better myself. How do I do this, since the refi is basically to consolidate the debt I have.

 

[stealth2]

What you do with the money after the refi is approved is up to you. The court wants to see how it will benefit your brother - show the court how it will pay for replacing his a/c, reroofing, rewiring dangerous wires, etc.

 

[pjaystevens47]

This mortgage is not a cash out mortgage...the lender is paying off the credit cards. I won't get actual cash from it. Also paying out for the appraisal and survey, and the closing costs.

 

[stealth2]

Then I really don't know what else to suggest.

 

[nextwife]

I don't think you're quite getting it. Whether you get cash and pay off your personal CC debt, or the lender does so, this scenareo decreases equity and pays off your bills. You need to resubmit a request that ONLY covers loan costs plus needed repairs. Pay off the CC debt seperately. or consolidate it into a lower interest card. Shop for a good, low fee deal on a refi. Check with the current lender- the rate may be slightly higher, but some lenders will allow a refi on a loan already in their portfolio without an apparaisal- IF the LTV ratio per tax assessment is low enough. Call around to different lenders to shave the OOP expenses. Surveys, in many refis in many markets, are NOT used and not required. I know that, in this market, the title companies give lemders "survey coverage" on their Mortgage policies, so no survey is needed.

Break it down: example:

Payoff of current loan= X
lender closing costs (apparaisal Credit report, closing costs, etc)= X
needed repairs= X

Leave out your moving costs and personal bills.

Then resubmit it.