max79 wrote: ↑Wed May 12, 2021 11:18 pm
Thanks all for the responses and ideas.
There are a number of options:
- Co-signing which I have all but ruled out (unless my name is on the deed but even then not a good idea). My brother may not like that too much though.
- Give her a monthly stipend for a linited time. This would buy her time so she can figure out a way to increase her income or cut her expenses. Only problem is that she may become dependent on that and expect it indefinitely.
- Give her a one-time gift to buy her some time. I think I like this idea better than a monthly stipend if I make it clear it is a one time thing. The ball would then be in her court to take action (generate income or sell house) and there would be a hard deadline.
- Buy another house and rent it to her. The problem is that she likely would not like it as much as current house. I could be stuck with the mortgage if she defaults on her rent.
- She sells her house and either buys a smaller house or rents.
- She rents out a room in her house or brings in a roommate. Not sure how feasible this is.
- I buy her house and rent it to her. I could swing this....if I sold my current house. Even if I were to come up with a down payment, the mortgage would likely exceed what she could afford to pay for rent.
- Move out of my current house and rent it to her. I have thought about moving to an area with a better job market. My house is a lot smaller though.
- Pay off her mortgage balance and I replace the mortgage company. Depending on what her balance is, I would likely have to get my own loan. If the numbers work for me, this could be a feasible option. Would I be able to get a lien on the house in case she were to default? Not that I would repo it but this would make it clear that this is what is owed to me in case she sells.
There does not seem to be much fanfare for the reverse mortgage here. One poster brought up that there would not be enough equity to last 30 years. Howver she would likely collect on an inheritance before then.
I could see her stobbornly refusing to move unless all options are exhausted. She would not want to live in an apartment and I could see her going for the reverse mortgage option to prevent that.
If she needs my help, I will definitely need more details on her financial situatiin - how much is left on current mortgage, credit card debt, montly income vs expenses, monthly mortgage payment, and what she was hoping to pay if her refi was approved.