property seizures

[Gabrielle21]

What is the name of your state? Maryland

My mother has a lot of credit card debts that she already has not paid for several months, probably close to a year. She's been struggling just to maintain her utility bills. She was only able to find a part-time job. She's 60 years old and hadn't worked in over 30 years. Now, she has been diagnosed with cancer and is probably not going to be able to work. She's been in the hospital and is also going to have a lot of medical bills. She has a house that is paid off that is probably worth around $200,000, a 16 year old car, plus all of her personal belongings in the house (furniture, clothes, etc.). If she is sued, what are they going to be able to take? Can they take her house? She's also been thinking about taking out a home equity loan, which I think is a really bad idea in case she can't make the payments on the loan.

Someone suggested she sign the house over to me to keep it from being taken now and also is she doesn't make it through the illness to ensure that the house comes to me instead of going to the creditors.

[Ladynred]

Yes, they could take her house if she is sued since she has 100% equity in it. Due to her illness, it probably would be a good idea to get her name off the house and deed it over to you while she is still able.

Another option would be what they call a 'reverse mortgage'. I'm not sure of the details on how that works, but I'm sure you could find the info on the 'net.

Given all her credit problems and her health, you should also speak to a lawyer, with her, about a power of attorney so that you can handle her affairs if it comes down to that in the future.

[Gabrielle21]

Thanks. Now if I can just talk her into deeding the house over to me. Do you know what that entails?

I checked out the reverse mortgage. That won't work because you have to be at least 62.

[freespeech]

If your mother should end up in a Nursing home this action will be considered inappropriate.

Why do you think it appropriate you receive a 200K asset and yet the people she legitimately owes get stiffed? Just curious.

[Gabrielle21]

#1 - My mother will not end up in a nursing home.

#2 - My main concern is that my sick mother does not end up homeless. How appropriate do YOU think that would be?

[Tayla]

Whilst the *suggestion* to deed the house over is a viable option, I must agree with freespeech. Deeding ones own hard earned equity over to another family member to deter financial problems is risky. I err to the side of caution and recommend consulting with a attorney for options .