If there is some equity in the house, they might qualify for a reverse mortgage. Have you looked into that option? Here are a couple of links
I think there are some good resources listed here for senior assistance. I also know of a couple that stayed in their home for over two years. It had actually gone to court because of the fraud issue involved.
I am making more assumptions on the situation, but here is the easiest solution that I can come up with. Figure out what your parents can afford, find them a place to rent, and put this home behind them. The sooner that they find a place to rent, the sooner that all this stress will be relieved. Once they are moved out it wonâ€™t matter what happens to the house and its easier to sell a vacant home than an occupied one.
If you have questions about specifics, feel free to contact me any time, email is great!
John A Cooper
You and your parents should sit down with a Realtor NOW, and review their financial documents, the housing market for their area and see what can be done ( short sale, possibly ) they should also call the Senior Legal Hotline I referenced previously. I know they probably are feeling embarassed by the whole situation but with your help maybe a solution can be found.
Without all the specifics it is hard to give you a good answer.
Please feel free to contact me if you wish 530-798-0215
My question now is what is going to happen to them? Will they really go homeless? They have no saving, a truck worth about $1000, and crappy credit.
But of course I am making a lot of assumptions here. Most agents are going to try to candy coat the situation, and there is no time to waste when youâ€™re dealing with a foreclosure.
Oh and one more thing. Donâ€™t let agents fool you. Lenders DO NOT stop the foreclosure process while doing a loan mod or short sale. The best you can hope for is if you have to buy time, is to get your lender to agree to a short sale and you can get one maybe two postponements. When dealing with a foreclosure there is no time waste.
John A Cooper
The Cooper Group
Your #1 Short Sale Experts
Here is the Sacramento City Senior Legal Hotline # 916-551-2140 also an article they have about fraud with more resources: http://www.caringneighborhoods.org/pdf/fraudscams.pdf
That comes directly from the office of the California Attorney General, which also contains more information about how to protect yourself from so-called loan modification companies.
Some of us work as home retention consultants for the banks. Banks are actively hiring us to encourage their homeowners to contact them and work through alternatives with them to try to work out a loan that is affordable to them. If that doesn't work, and they are forced to short sale their home then having control over the process is much less stressful that watching your home go to foreclosure.
But if you feel that this is all too much for your parents, and they really ought to consider senior housing anyway, you might want to start to investigate some of the alternatives for them. One source is a website that has all kinds of assistance for seniors, including in home care, or independent living centers, adult communities,...etc. Go to http://www.snap4seniors.com and you can see resources available all over the country.
There are also some very nice low income facilities, like at Madison Ave near Illinois in Fair Oaks. It's just beautiful, independent living apartments requiring a maximum income per month in order to qualify.
This is just a tip of the iceberg in hitting on various aspects of your question. Just call, or write here if you need more specifics on any one particular idea.
You know many of us in the business have been warning others that these Loan Mod companies are basically a scam... I personally do not know of anyone who has benefited from them.
While I know that this doesn't help your folks.... in doing some research for some clients of mine, I discovered that Loan Modifications are also a "multi-level marketing" business... One such company is Certified Financial Protection Group LLC. http://pffsi.certifiedfinancialprotectiongroup.com/index.html
Hereâ€™s a copy of the Associate Program in a PDF format...
They charged my client $3,500 each for two properties.. They tell their "associates" to charge what ever they want.. but they do have a "minimum"... So what happens is you get folks who are looking for a way to make a buck in a time of a lot of hurt for many people and we get rip offs like this.
I've written about this on my own blog to let people in my circle know that you don't need a loan modification company to do this work for you. The banks don't really want to talk to anyone but you... the person who took out the loan..!
You see....Loan companies want to keep you in your home if at all possible, so have your folks contact the lender directly... beause it may not be too late..... and yea... it will be a hassle but talk to them and maybe it will work out for them. Give it a shot and let us know what happens...
I hope this helps....
Make it a great day...
Have your parents considered doing a short sale? At least that would postpone the trustee's sale for a while, assuming the Notice of Default has already been filed. If you need help with short sales, they have become my specialty.
As for senior housing in Sacramento, I really don't know off the top of my head. I know there is senior housing downtown. Perhaps you could check with the Sacramento Housing Redevelopment (SHRA) to find out if there is a waiting list.