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MERLE
A home equity loan is a terrible way to pay off a credit card. If the loan defaults, you will lose your home.
BORIS
u did not state exactly where her home is–or its size. Often, people can economically save their home by using it for different reasons; like
putting in an assisted care facility.
[might be ideal for her if you can
help coordinate.]
or—she sells her house to you. With that cash, she pays off her debts totally.
Then, you give her a “life estate.”
When you have paid off that mortgage, you then, buy whatever other home you want. Everyone wins and she can life in the home forever.
YOU did not state where you want to buy your new home in 2 yrs or
what you wanna pay for it…..
but I am available to guide you [both]
LANDON
The problem with getting a second mortgage to pay off the debt is that it is now your debt. This will be taken into consideration when you apply for a loan. I don’t know how old your Mum is so I’m not sure if a reverse mortgage on her home is the right way to go either. I would talk to her bank, believe it or not they can sometimes be helpful, it’s their money after all that they risk loosing if she declares bankruptcy. Best of luck.
REGINALD
It can be a good way to pay off excess debit…..but remember, you are basically putting your home up as the collateral…..you default on the loan and stop making payments and your condo belongs to the bank. You say that mom has paid her home off (if I’m reading this right), why doesn’t she take a look at a reverse mortgage or take out a personal loan, putting her home up for collateral. I know you say she does not make much money, but you could possibly work with the bank and get her payments down where she could manage them.
AUBREY
Did I read it right: You want to get a home equity loan on your own condo to pay off your mom’s credit cards?
If so, then you’ll be getting a loan and actually giving the cash to your mom.
You need to be aware of “the gift tax” which affects gifts of more than $12,000 a year.
Your credit won’t be hurt as long as you make the payments on time. So my question is: “can you afford the payments?”