I've been a lurker for some time, not a poster - but something I said out loud about real estate made its way to an in-laws ears, and she's presented me with a problem. I was hoping to get some advice for her from some of you.
Her grandmother has a house in a tiny town - even Zillow doesn't list anything there - and she wants out quickly so she can move to a senior housing center. I don't think they can take her if she owns property, so she's even considering just letting the house go back to the bank. So at this point she really doesn't have much to lose.
Her loan is terrible - 12% interest, 15 years. Her payments with taxes and ins are about $600/month. She isn't able to refinance it, and she's afraid she can't make the payments much longer anyway. She isn't behind on payments now though. I think the house is valued around $60,000 (and she still owes $60,000) - over 2,000 sq ft, with an attic that could also be finished.
My 2 ideas were:
1) Lease purchase. She'd have a little upfront from option consideration, and with a 2-year lease could look forward to cashing out. Not sure of the finer points of taxes and insurance here.
2) Owner finance. She wouldn't realise much from the monthly payments, but at least she would no longer own the property and would qualify for the senior housing.
What other options can you think of? She's in a tight spot now, as her son, who lives with her, is dying and in need of care that she's becoming unable to give. A bad weekend for him has made her desperate.
Any feedback greatly appreciated!!