When at risk of losing home, seek counseling
MONEY TALK
Dear Liz: My daughter and her husband bought a house 18 months ago with financial help from his mother, who moved in with them and helped make the payments initially. The mother-in-law then found love, got married and moved out. My daughter lost her job and they put the now-unaffordable house on the market, with no response. Her husband recently lost his job, and they don't know what to do next. They have credit card debt but are still current with the mortgage. I suspect this will be a long trial for them and don't know where they can go for advice or help with handling debt, especially the mortgage, before they miss payments.
Answer: Their first call should be to a housing counselor approved by the U.S. Department Housing and Urban Development. They can find links to one online at www.hud .gov or by calling (800) 569-4287.
HUD-approved housing counselors stay up to date on the various foreclosure-prevention measures available to homeowners. They can review your daughter's situation, suggest options and help her work her way through the minefield of mortgage modification.
Such workouts, though, typically require that troubled homeowners have sufficient income to make the modified payments. If there's nothing coming in but unemployment checks, they might not have the resources to get a modification approved.
The same is true for debt repayment plans offered by credit counseling agencies. Without income, there's not much help they can offer.
If the couple don't find jobs soon, or even if they do, they might want to read self-help publisher Nolo Press' new book "Foreclosure Survival Guide: Keep Your House or Walk Away With Money in Your Pocket," by attorney Stephen R. Elias.
Hiring trustees to manage finances
Dear Liz: Would you please expand on your answer to the question about steps an older person should take to manage her finances in the event of incapacity when there is no trusted person to take over? Can you provide information about professional services that can be obtained in those circumstances?
Answer: Professional trustees can be appointed to make financial decisions for you if you should become incapacitated. Your estate-planning attorney should be able to provide referrals.
Miffed about new credit card terms
