Help to save elderly parents home

3 Replies


I am new to real estate investing. However, my elderly parents are in desperate need of saving their property. I know there's a way that I can help but need some help. Here's the issue: (1) the house needs repairs, plumbing, roof, electrical and major reconstruction. (2) my parents are on fixed income and would not qualify to refinance property. What is the best solution to upgrade the property without my parents having to sell before things become a safety issue? Can they deed it over to another family member and that family member can refinance the house to do the repairs? What are the legal risk in terms of someone else assuming the loan?

@Anissa Pearson from San Pedro, CA

First off, sorry to hear, that your parents, need to go thru this. 

Do they have some type of 401(k), or other retirement plans they can borrow from? Keep in mind there are some retirement plan that won't let you borrow even under hardships. But it's worth to investigate. 

There are other loans, that borrow from the equity for cosmetic loans, but come at a higher interest rate, also, it places a lien on your property for security, you know.

I'm strongly against, deeding it to another family member, simply because YOUR PARENTS will be relinquishing "all rights" to the property. Real property for Nothing. A big NO, NO. 

Lastly, I know you are against it, but it's much better protecting your parents equity than deeding it to someone else. And its selling the property, CONTINGENT upon acquiring another property. It gets more details than this.

Anyhow, hope this helps.

-Rudy Vazquez 

Hello Rudy, 

I understand your concerns in terms of deed but there's particular concerns in terms of financial issues, health, credit, etc that play a huge factor in including that option. My dad is very ill and my mom has little to no income. I currently modified the loan maybe two years ago and they were upside down, so if any equity (very little). The reality is that they have about another 25 years before the loan would be paid off and are currently struggling just to make the mortgage payments (less any other monthly obligations). I have 4 other siblings, which we are all trying to figure out the best possible solution to save the house so they can (at the very least) have shelter. But it's deteriorating and they have no financial mean so to make them necessary repairs. We are close and with that option, the house will stay in the family, get repaired & guarantee a place for them to live.

@Anissa Pearson from San Pedro, CA

Got it, it changes a lot of factors now. Health issues, and the loan modification. 

Keep in mind, even though, you change Title of ownership of the property, the loan will still be outstanding on the property. So, very little loan, will be there for cosmetics, if at all depending to the loan modification. The lenders check how much loan has been taken out of the property, etc.

Best bet, if you all wish to keep it in the family, is change title to a "Family Trust" and if all the siblings can pitch in for repairs etc. This way it protects all family members interests longterm. 

Sorry, couldn't be much help on this. 

-Rudy Vazquez