Step mom died unexpectedly. Dad is asking advice. I think I’ve noddled on all the options but maybe not. Income is now cut to only SS at $2200 after Medicare premiums. Mortgage and escrow is $970, loan with some home things (HVAC plumbing etc) is $600. Medigap at $500 (has lots of Rx and medical consumption that cannot be avoided but it maybe covered both so might be less now). Step daughter and her kid live there too and subsidize only $300 a month, step daughter makes very little money. His assets are 20k in 401k, 8k checking. That’s it. Step daughter has zero money. Home equity is $230k with 98k remaining mortgage balance. He lives 9 hours away, moving near me is not an option nor is subsidizing. Live in rural area. Obviously Options are not great. He is 75.
Family death, strategies
byu/drwhosportsfan inpersonalfinance
Posted by drwhosportsfan
4 Comments
How bad would a reverse mortgage be as an option
Have you looked into a reverse mortgage? Unless the stepdaughter starts contributing, I don’t think there are many other options.
stepdaughter needs to contribute more. or sell and but a smaller place cash -so no mortgage -just escrow and taxes.
The bank will just take the house back if the stepdaughter can’t pay the reverse mortgage back.