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My mother's memory is fading as is her ability to perform daily tasks. We just discovered that for the last year she has not been paying her mortgage and now her home is going into foreclosure. No one has POA or guardianship over her at this time. She bought a home in 2008 through HUD there is 60k left on the loan. I do not have the credit to take out a loan myself but we need to save her house. She never discussed her finances with us but has said that she doesn't remember ever refinancing it. I want to call the mortgage company and see what I can do but I don't want to say the wrong thing and cause her to lose it sooner. Is there a way to get it switched into my name without having good credit? I have never purchased a home and do not know anything about mortgages. I'm just trying to save hers. The home was bought through Wells Fargo in 2008 for 100k when the markets crashed her mortgage doubled and she was paying close to $2,000 a month. Recently in the last couple years her mortgage went back down to $750 a month. Does that mean she had to have refinanced it? Wells Fargo no longer owns the mortgage it is now through a different company also a recent development. Any advice is appreciated even if that means selling it and finding her something else. I just don't want her to lose it.

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Sit down with her and make the call. She will have to give them permission to speak with you.

Something has obviously happened with the mortgage, 2k for a 100k loan isn't right, something is going on and the only way to sort it out is to get the history on the mortgage. At that rate she would have paid the house off in 5 years with a 25% interest rate.

Explain that she has had a medical emergency that has left everything in a mess and ask if the can work with you to sort this out. Beg them to put a hold on the foreclosure.

When a home goes into foreclosure, you don't have to pay the entire mortgage to stop it, you do have to bring it current and pay all of the foreclosure fees, which add several thousand to the deal.

The only advice I can give you is to start and ask for mercy. A foreclosure usually takes about 90 days to complete, so the clock is ticking, you have to do something starting now.

I don't have a clue how someone with bad credit would get a large loan but, if mom hasn't been paying her bills where is the money? Maybe she has enough to bring the payments current and halt the foreclosure.

Best of luck, this is a tough situation.
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I would wonder if she had a FHA loan in the beginning. With an FHA, your house insurance and taxes are all included innthe payment. Its an escrow thing. You set up the insurance agent who will cover the house. In my situation we paid $400 a month. $200 of that was the mortgage the other $200 was our insurance and taxes that went into an escrow acct. When the taxes and insurance were due, FHA paid the bills.

Mom could have remortgaged for a lower rate with another company thats why the $750. But that means she now is responsible to pay her taxes and house insurance. Has she paid them? You need to call the tax office to see if she has a balance with them.

Has she actually gotten a foreclosure letter. In my State, Mortgage companies can't foreclose for 2 years and even then they are not quick to do so.

Sounds to me Mom needs to live with someone or be placed in an AL or nursing home. Then you save the house only to find you have to pay the utilities and taxes because Moms SS goes to her care in a NH because she needs to be on Medicaid. For me, I would sell the house pay everything off and use the proceeds for Moms care.
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Isthisrealyreal Aug 2021
JoAnn, just FYI. Once a house is in foreclosure, you can not do anything except bring the mortgage current. You can't sell it, you can't legally get another loan against it, nada.
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You need an elder care lawyer, like right now!
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Before you do anything get durable power of attorney before it’s too late to step in to clean up any messes or get any information. Elder law attorneys often give free consultations. Find a good one - don’t take our opinions as facts.
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Do a POA Today!

Then call and see whst can be done about the house..

If mom hasn't been paying her mortgage then she must still have the money in the bank.

Do to Covid, they might agree to accept a certain amount owed and let you continue the payments.
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If she hasn't received a diagnosis for dementia, go online and look up the form for a Durable POA. Fill it out and take her and it to her bank and have it notarized ASAP.
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So sorry you find yourself in this hard situation. I would be trying to gather in troops & resources to help.

Things to start with may include;
* reading up on Anosognosia (lack of insight - common after stroke. Articles here on Aging Care).
* Legal advice, especially for elders
* Medicaid
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Call the current mortgage company. Ask for details about the loan, your mother will have to be near the phone to allow them to speak to you. Ask them to send you an email with all the details about the loan.

Then, schedule an appointment with a lawyer that deals with real estate and/ or elder law ( I would lean in the direction of elder law or family law). Take mom with and get the lawyer to draw up power of attorney for financial affairs, power of attorney for medical affairs, mom's will, and possibly an advanced directive (outlines life-sustaining procedures mom does and does not want). Show the lawyer a copy of the house loan and see if there is any recourse. This course of action will cost a bit, but the advice will be worth gold.
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First and foremost, your mother may not be suffering from dementia. She may be suffering from memory loss due to brain damage from having a stroke. Therapy can help to restore some of her cognitive abilities. I believe that it is imperative that your mother knows that you love her and is there to help her to get better. That you have no interest in doing anything but help her to feel better and to straighten out any issues that may cause her to loose her house. You may have to take the issue to court so that they can have her evaluated. (Legal-Aid Service may help with a lawyer who may do it pro Bono.) They have special programs that are designed expressly for seniors. Once evaluated, if they find that her mental health has demenished temporarily or permanently, to the point that she needs a POA then you can get the ball rolling.
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Danyail88: Imho, you may need to retain an elder law attorney.
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