Father in law's financial mess

[SarahSmile01]

What is the name of your state (only U.S. law)? Ohio
My father in law is older and in declining emotional/mental/physical health. He purchased his home 8 years ago and while "not thinking clearly" he purchased a condo in a neighboring town 3 yrs ago. Last month he was in a car accident, when we picked him up from the hospital and brought him to his house we discovered the place is unlivable. He has not had us over for years. He is now living at the condo and we are at a loss as to what we're to do with his house. He owes the bank $140k, we'd be lucky to get a buyer at $80k, it needs A LOT of work and a lot of money, which we do not have, and it is in a terrible area. Just to get it halfway decent for buyers to even be able to walk through would take us months, dumpsters, hazmat suits, etc. His pension barely covers both mortgages and his few other bills. His declining health will be leading to increased care and of course there are costs associated there. My question, is there a way for us to unload this house? Voluntary foreclosure, bankruptcy? We are totally overwhelmed and do not even know where to begin.

[nextwife]

Is there equity in the condo? What was the lender's response when you contacted them and explained that FIL is infirm and unable to repair , make payments or sell, and that he wished to pursue a short sale or DIL?

[SarahSmile01]

No real equity in the condo yet, he didn't put much down and has only had it for 3 years so most of what has been paid has gone to interest. His accident was only a month ago and we (the family) just sat down with him last night and he finally let us see his financials. So we have not contacted the lender yet, if it was up to me I would call right now but they will only talk to him (of course) and he's not real "with it" due to his mental state. I believe getting power of attorney is probably our next step. I have been trying to research all of this today and get some sort of grasp of what options may be available to us thru the lender. I didn't want us to approach the situation completely blind. We have never heard of DIL or short sale so this has all been very informative. He is very depressed and suicidal regarding the whole situation so it's our desire to try to dispose of the home in the quickest manner.

[Zigner]

Originally Posted by SarahSmile01

No real equity in the condo yet, he didn't put much down and has only had it for 3 years so most of what has been paid has gone to interest. His accident was only a month ago and we (the family) just sat down with him last night and he finally let us see his financials. So we have not contacted the lender yet, if it was up to me I would call right now but they will only talk to him (of course) and he's not real "with it" due to his mental state. I believe getting power of attorney is probably our next step. I have been trying to research all of this today and get some sort of grasp of what options may be available to us thru the lender. I didn't want us to approach the situation completely blind. We have never heard of DIL or short sale so this has all been very informative. He is very depressed and suicidal regarding the whole situation so it's our desire to try to dispose of the home in the quickest manner.

If FIL isn't "with it", then he likely cannot properly appoint a PoA. What you need to research is a conservatorship in your state.