House payment question?? please help very important?

Question

ok well my dad bought a house about 10 years ago, he worked as an auto mechanic and made very good money. he started his own business about a year ago unfortunately he was murdered while at his new business.

well my mom has been trying to make ends meet however she only makes about 12 dollars an hour and the payments on the house are 1500 plus other bills such as food, water,electricity etc... so there is no way she can continue to keep the house. does anyone have any advice as to what she could do. could she talk to the bank and ask them to lower the payments??

Answer 1

Did your father by chance have insurance that would have paid the mortgage off if he were to die? If your mother can't refinance I would say sell and find a smaller more affordable home

Answer 2

She can either refinance for a longer term, or sell the house and move to a smaller and cheaper place.  After 10 years, they should have built up significant equity, enough to make either option work out.

Answer 3

She can refinance (take what she currently owes and adjust the loan to that).  

Answer 4

She could try for refinancing.  Talking to the bank would be best regardless.  She has to let them know what's going on.  What about life insurance?  Has that all been taken care of?

Maybe take a room-mate?  Or how about checking out the government sites for your state and see if there is some sort of program that could help?

I'm sorry for your loss.  I really hope things get better for you and your mom soon!

Answer 5

Hey Bro, unsure what State you live in I'm in California, Firstly So sorry about your dad. OK now to business Before you start to go the route of forclosure and or Re- Financing Like all these people are saying put that on the back burner... Ok what your mom and you should do is go to your note holder ( the person you pay your payment to) and talk to the Loss Midigation Department and ask them if they can do a Loan Modification, what they will tell you to do is Write a Hardship Letter and submit it to them and in a week or so they will give you an answer. some times they will reduce your payment for and extended time or change your intrest rate....or even in some cases not make you pay your mortgage for a limited time without consiquences, hope this helped.....

Answer 6

Sorry about your dad.

Her net pay is just enough to pay the house note. She could try and rent rooms to make some money to stay.

She could try and sell the house so she can move into something she can afford.

The bank is not going to lower the payments because of her inability to pay. She needs to act fast to prevent foreclosure.

Anyone in the family able to help her?

Jeff (weseye) Wesley

Answer 7

She can try talking to the bank, if its between them lowering the payment or foreclosing they might lower the payment but to be honest she is so far below the payment she needs that they may look at this and say she cant even afford a significantly lowered payment - we may as well just foreclose now.

Since its been 10 years now is there no equity in the place, maybe she should just sell it and get a new, cheaper place.  Or maybe she could make ends meet by renting out a room.  

Some other people mentioned refinancing and that may be another great idea but again her income is so low that refinancing alone may not solve the problem (and she may not be able to get a new loan either, since her incme is so low) - still maybe it'll help.

Answer 8

Refinancing the amount left on the loan might be worth pursuing, but it really depends on what the interest rate is on the original loan.