Comments on: home equity loan advice for grandparent?

By: Gem

Gem — Wed, 08 Sep 2010 14:10:36 +0000

Look up Reverse Mortgages. If your grandma’s house is not worth a lot, this might be an option for her. Basically what it does a Reverse Mortgage does is sell your grandma’s house, to the bank, but she gets the money now, before she dies and gets to live the rest of her life in her house.

My dad did this and thank god he did. Just do some intense research to make sure the company is legit and that they offer her a good deal.

Good luck.

By: Jeff H

Jeff H — Wed, 08 Sep 2010 14:10:36 +0000

Don’t do it. At her income, the risk of her loosing the house is to great. Listen to the Dave Ramsey Show at the link below.

Yes, he does also sell a book "The Total Money Makeover" which has made best seller lists. Either give it to her for Christmas or have her check it out of the local library.

By: spy_vs_spy_vs_spy

spy_vs_spy_vs_spy — Wed, 08 Sep 2010 14:10:36 +0000

dont do a second mortgage like that. If you dont pay on time they take your house. the best thing to do is file chapter 13 bankruptcy. this is not the normal bankruptcy you may be thinking of. all interest goes to 0% as soon as you file on everything and the court lets you make payments to principal until it is paid off. very good option. second is a "reverse mortgage" but then, when she dies, you will not inherit the house.

By: maamu

maamu — Wed, 08 Sep 2010 14:10:36 +0000

If she is in jeopardy of losing her home, I would say that an equity loan would be a good option. There are also reverse mortgage loans for older people. I am not quite sure how they work, so I will not offer any recommendations on them. Check the web and see what you find out.
She may have to pay a loan origination fee to start the loan process, but closing costs are not charged unless the loan closes (approved and completed).

Bless your heart for helping your grandma through all of this.

By: illinois_girl_1973

illinois_girl_1973 — Wed, 08 Sep 2010 14:10:36 +0000

From the sounds of it, you are thinking a home equity loan to cover the 10,000 of expenses. Prior to closing with Champion Mortgage, please be sure to shop around. The questions you are asking such as "Are their closing costs that must be paid before she receives money? Even if she doesn’t get approved?" should all be directed to Champion Mortgage/Lending Tree and the others you contact to compare rates.

Will she have money left over in her fixed income to make this additional payment each month?

By: ALEGNA

ALEGNA — Wed, 08 Sep 2010 14:10:36 +0000

I agree with Gem, look into a Reverse Mortgage!!! If there’s equity, she can can receive some cash up front AND receive income on a monthly basis fromt he equity of the home!

I would seriously look into that first!