I've got a homeowner who's in pre-foreclosure but doesn't want to sell because he has nowhere to go.
He's 73 and on social security. Since he doesn't want to sell, I want to at least point him in the right direction. What are his options? Here are a few I can think of:
- File for bankruptcy to delay a foreclosure
- Talk to bank about covid related forbearance.
What would y'all recommend?
What does he have in equity in the property? Also could he afford it on SS or is this a losing battle for him. If the later his best bet is to get on the list for senior housing, if there is a senior center in the area there may be a social services he can be connected to. If this is a temporary hole your two answers may be the best. He could also consider transferring the house to an heir with a life estate but that has its own challenges.
As you can probably tell I do not do this kind of investing but have run across this with friends and acquaintances sometimes the best bet is to get out of the house.