If a relative asked you to do something dishonest to save their house,...

[TZ]

Would you do that? A relative who has made a series of bad financial choices (including a $2,000 investment in some sort of gold club where she would sell gold or somesuch..:wtf: ) asked a newly retired relative to put her address on her drivers license so it would appear that she lived there..so she could get some kind of reverse mortgage on her house...Oh and retired relative would have had to sign the papers. That seems all kinds of wrong to me..and she didn't do it, which I think is the right thing.
What do you think? I believe they may lose their house, but its not like they haven't had plenty of chances to get legal help or make BETTER financial decisions....:shrug:

[flvegan]

1. To get a mortgage, she'd have to be vested in title

so it wouldn't have worked anyway. Plus, the homeowner would also have to qualify for the reverse mortgage, so that would be strike two.

The only way for that to work would be for your relative to "sell" the home to the newly retired relative and she'd be able to get the mortgage. I'm always amazed when people will gamble with their homes to make/save a few bucks.

If they're in danger of foreclosure, their best bet is to call their lender and try to work out a modification of their current mortgage.

[Redstone]

3. Excellent advice from a professional; I hope the OP passes it along.

Redstone

[Droopy]

2. Your retired relative did the right thing

You can't go through live trying to take care of everyone else, especially doing shady deals like that. That being said, I still think it's okay to try to help someone. Just do it right. If one of my relatives made some bad financial choices and ended up losing their home I would be happy to offer to let them stay at my place with the understanding that it was a temporary arrangement until they got back on their feet again. Fortunately for me, my entire family feels that way about each other. I know your's does not.

[YellowRubberDuckie]

4. When you mismanage your finances and don't pay your mortgage...

...you kind of brought this on yourself. I have very little sympathy for those people. There are several people we have foreclosed on who had tenants living in their mortgaged property. They were dutifully paying rent, however, they were not paying their mortgages with it. And we even had one idiot get foreclosed on at the end of June and collected rent on the first of July. Douche bag. I felt so sorry for all of those people. Thank goodness for cash for keys programs.
Duckie