Judgment Proof? Mortgage

[tonyharrell]

What is the name of your state (only U.S. law)? TN

Hi. My husbands mother is facing foreclosure on her property. She is 80 years old & has worked up until the last couple of years. She is now down to $1,100. SSI. That's it. Yes, she is in over her head with the real estate & has had it for sale for quite some time now. She has tried the reverse mortgage and it did not work for her. She is now facing foreclosure & nowhere to go if she loses her home. Someone mentioned her possibly being "judgment proof". I am still confused as to what that really is and whether or not she is considered to be "judgement proof".

Thank you so much for your help.

[Ohiogal]

Originally Posted by tonyharrell

What is the name of your state (only U.S. law)? TN

Hi. My husbands mother is facing foreclosure on her property. She is 80 years old & has worked up until the last couple of years. She is now down to $1,100. SSI. That's it. Yes, she is in over her head with the real estate & has had it for sale for quite some time now. She has tried the reverse mortgage and it did not work for her. She is now facing foreclosure & nowhere to go if she loses her home. Someone mentioned her possibly being "judgment proof". I am still confused as to what that really is and whether or not she is considered to be "judgement proof".

Thank you so much for your help.

She can lose her home. A 90 year old woman in Akron Ohio was foreclosed upon. She then shot herself. Became national news.
[url=http://www.cnn.com/2008/US/10/03/eviction.suicide.attempt/index.html]Fannie Mae forgives loan for woman who shot herself - CNN.com[/url]
However she may have help in Obama's economic stimular plan. You need to help her contact the bank to see about refinancing or something of that nature to keep her in her house.

[nextwife]

Originally Posted by Ohiogal

She can lose her home. A 90 year old woman in Akron Ohio was foreclosed upon. She then shot herself. Became national news.
[url=http://www.cnn.com/2008/US/10/03/eviction.suicide.attempt/index.html]Fannie Mae forgives loan for woman who shot herself - CNN.com[/url]
However she may have help in Obama's economic stimular plan. You need to help her contact the bank to see about refinancing or something of that nature to keep her in her house.

In my experience, when an 80 or 90 year old has a big mtg they can't afford, it's because they have let their kids talk them into cash out refi's to "help them out", and have sucked all the equity out of their home over the years. Yet, I never see those same adult children who had benefited from mom or dad's financial help step up when their parent is now having trouble making payments.

One has to wonder why an 80 or 90 year old still has mtg payments at all.

Whenever I talk to someone that age who is heavily leveraged on the home they have been in for 30-40 years, it is because they lent/gave money to their kids.

[Ohiogal]

Originally Posted by nextwife

In my experience, when an 80 or 90 year old has a big mtg they can't afford, it's because they have let their kids talk them into cash out refi's to "help them out", and have sucked all the equity out of their home over the years. Yet, I never see those same adult children who had benefited from mom or dad's financial help step up when their parent is now having trouble making payments.

One has to wonder why an 80 or 90 year old still has mtg payments at all.

Whenever I talk to someone that age who is heavily leveraged on the home they have been in for 30-40 years, it is because they lent/gave money to their kids.

I have seen predatory lenders take over and cause issues -- meaning someone promises to redo the house (new siding, windows, etcetera) and they have an appraiser state that the house which is worth 40k is actually worth 100k and they get loans for repair work that are worth just as much if not more than the house. The repair work that is done is either shoddy or not worth the amount paid or no work at all is completed. It is a scam. But it has happened in many different places.

The thing is -- the person can still lose their house unless Obama's foreclosure relief can save them.

[efflandt]

Judgment proof just means she does not have assets they can grab if she has a deficiency, it does not mean they cannot foreclose.

I heard that Obana's proposed mortgage relief is not in effect (not that Ask Yahoo is an authority).

[nextwife]

Originally Posted by efflandt

Judgment proof just means she does not have assets they can grab if she has a deficiency, it does not mean they cannot foreclose.

I heard that Obana's proposed mortgage relief is not in effect (not that Ask Yahoo is an authority).

In effect or not, it still would NOT apply to non FNMA lenders who have taken no TARP money.