In 2003, my brother (now 42) purchased a home, in Redford, with my father (now 81) co-signing. I was going thru a bad divorce and had zero credit. My brother & I moved in together, splitting the mortgage payments. Five years ago, I moved in with my fiance, still paying 1/2 the mortgage payments, each month. I suggested to my father, at that time, selling the house...but he didn't want to, as we wouldn't have made any profit on it. Nice thinking...we all wish we could go back in time on that one!
So, the house is underwater, like so many in the area...the outstanding mortgage is about $95K and comps in the area are selling for approx. 40K. There was an attempted midnight break-in, this year, when my brother was in the home. He has some learning disabilities and doesn't use common sense when responding to emergencies; so our family all agrees that we need to get him out of the house and the neighborhood.
My brother works 2 jobs and has some small investments (IRA's, etc.) and a 401K thru his employer. My dad, who co-signed, is retired and owns their home out-right. He and my mother have some stocks, a minimal retirement package, along with Social Security.
My father is very much of the generation that you take out a mortgage and you honor that committment...an ideal I share. With that said, though, my brother is in danger in the home and it makes no sense to pay a full $115K mortgage for a home that will never regain the value it once had.
We have our payments on an automatic withdrawl, weekly, so we're paying 13 monthly payments per year. We want to revert back to making monthly payments, via check, so that we can close the bank account and default on the loan. (We don't even know who to contact to make this change...any suggestions?) We are, obviously, very concerned about BOA coming after my parent's investments and/or home, along with my brother's savings, although they are not significant.
Looking for advice and, if any one has it, personal experience in a similar situation. I've been paying half of the mortgage, for a home I haven't lived in for 5 years, to try and support my parents and brother, but knowing that that money will never be recouped is causing much tension and a large divide in my family.
Thank you for any assistance...I can't tell you how much I appreciate it! GREAT forum!