My question is regarding avoiding foreclosure but the nature of my circumstance is rather unusual.
Let me start by explaining that I just recently learned that my life partner of 20 years was over a year behind on our mortgage payments when, about 2 months ago I answered the door to a foreclosure notice from the bank.
There are 2 properties involved: our main home and a guest home next door that he bought for cash back in 2003. I also learned that he had secured a 2nd mortgage in 2008 to finance a business venture (which failed) and in doing so he combined the guest house into the package.
Prior to this, sometime around 2007 he put the guest home into the name of a trust and listed me as a trustee (he was acting manager I believe and not a trustee) I think he also made it a homestead.
Fast forward to present time when we received the foreclosure notice .. he’d been getting quite ill, much more so than anyone knew including myself and it was apparently affecting his thinking.
Not feeling well enough to deal with everything, we went to a local atty. and gave them a 2K retainer to deal with the courts in answering the foreclosure and to work with the bank for a re-fi. This was just last month. Days after our first consultation I had to rush him to the hospital where he was diagnosed with stage IV lung & bone cancer and last week he passed away.
I’m doing my best to unravel the paper trial of what he did but it’s quite confusing. I know so little of these things and he always handled the finances. In his will he left both homes and everything in them to me, which may have been an advantage when the will was drawn but today, it means a 600K debt on 2 homes that are severely under water and that is way beyond my means.
Even so, I want desperately to save them. We’ve been here for 20 yrs, had custom remodeled the main home in 2000 not to mention all the memories. I’ve been able to rent out the guest home and, if I can somehow get reduced financing, rental income from the guest house could very possibly pay the mortgage(s). The problem as I see it, is that my personal debt:income ratio looks bleak.
The income we had from his business was taken over by his daughter, who was named executor of the will, so that is lost. I don’t feel I can risk throwing more money at an atty for fear that nothing would come of it. I had to put the attys we hired on hold to stop the financial bleeding.
So here I am, 62 years of age, still grieving the loss of my loved one and scared to death of facing an eviction. I have no experience in these matters which is making me feel overwhelmed.
I realize this is a complicated situation but I’d like to know if I have any chance of saving our home, perhaps through one of the MHA programs or something else? I’m sure there is more info you may need and I’m happy to answer any questions that might help you in making suggestions. Thanks so much for your time. –
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.My Life Partner Died Suddenly and Left Me Sinking in Foreclosure. - Barb by Steve Rhode