wishful thinking or could this work

[greatchef]

What is the name of your state? Massachusettes

I have a friend who is facing foreclosuer.(with Hud)She owes 50,000 that is owed on a house that is worth appox 275,000.Because of filing for social secruity because of a disability she has been unable to work and collects a disabilty check from the state for appox 500 a month plus she recieves 240 a month in child surport and appox 250 a month in food stamps.She pays 800 a month for the morgauge and other than car insurance and phone,and utilities has no other debts.

I have been trying to help her save the house by checking out home equity and refianancing the morgauge to lower the rate of interest she is paying and lower her monthly morgauge payment.But because of her limited income this seems to be a problem

I would try to get a loan for her,but even though I do have income my debts are high.

In thinking this over and playing around with calculations it dawn on me a possable solution,but do not know if it is fessable.

She has a house with a large amount of equity but no income.I have the income but have high debt.Could there be a way that we could join forces in a joint ventuer using what we both have to benifit the both of us ( get a loan,pay off the house and pay off my debt ,splitting the cost of the loan. I know there would be many other details to attend to,but I am just looking to see if this could be done Thanks

 

[seniorjudge]

This would work if you both get a lawyer (one each) and draw up everything in writing.

That way, no one will be disappointed down the road....

 

[MortgageGuru]

This wouldn't necessarily work because you will have to use the mortgage history of the house for working up the loan. If it is in the process of foreclosure then not many lenders will even try it. Her best option would be to sell the house, pocket the proceeds or buy a house outright in most other parts of the country.

 

[seniorjudge]

...If it is in the process of foreclosure then not many lenders will even try it....

You may very well be correct, but I have seen foreclosure sales stopped when someone showed up on the courthouse steps with a wad of cash.

Money solves a lot of problems....

 

[rainmand]

She's a perfect candidate for a Reverse Mortgage if she's 62 or older. The Reverse Mortgage will stop the foreclosure and pay off her house. In addition to paying off the house, she qualifies for additional money that can be taken out as a lump sum, a equity loan, or monthly payments for the rest of her life, or a combination of all 3 choices.

 

[rainmand]

Whoops. I just re-read your post and saw the part about her receiving child support payments. She's probably not 62 if she's receiving child support. I wish I could take the previous post back now.

 

[HomeGuru]

She's a perfect candidate for a Reverse Mortgage if she's 62 or older. The Reverse Mortgage will stop the foreclosure and pay off her house. In addition to paying off the house, she qualifies for additional money that can be taken out as a lump sum, a equity loan, or monthly payments for the rest of her life, or a combination of all 3 choices.

**A: you don't know what you are talking about.