Father passed away, Mom needs help

[parent]

Hi,
My Mom will lose my fathers SS income. They possibly owe more on the house then its worth currently (hoping to get a realator to do a rough value). They have a mortage of about $220k and a equity loan of about $60k. Currently paying about $1800 for both loans not including taxes & insurance.
What options does she have. Her income is going to be the higher of the 2 SS (my fathers amount) and salery from her part timejob.

Her next payment is due in the next couple days. What should we do? She would like to stay in the house if possible.
Thanks
Jon

[Moe Bedard]

Hello Jon and welcome to LoanSafe!

I am sorry to hear about things. Let me see if I can provide some help.

There is a free book in my signature that you can download and get some materials to help guide you through the process. You can get help from a non-profit like www.NACA.com or www.995HOPE.org also. 888-995-HOPE

OK, most mortgage servicers are not helping homeowner who are yet not late on their mortgage. So, most likely she will not get help until she is late. However, with that said, I recommend trying to get help now before that happens and just hunker down and get ready to fight for a few months along side your mother. This may take anywhere from 2-6 months to complete.

Lenders are looking for 35-45% debt to income ratios in relations to qualifying homeowner for a loan modification. I have seen rates as low as 2-3% on mortgages. So, add up all the income and then debt and see what ratios you are at and what interest rate you would need to get down to a 35-45% debt income ratio.

Get all your duck in a row and either start this yourself or get a non-profit fighting for you and you keep a watchful eye on the whole situation. That is my advice.