Chimpy's Down-Home Economy

[ChiciB1]

Just had to relate a true story that I've been involved with.

A friend I worked with before I retired started calling me about 6 months ago a told me she had been in a car accident. She's pretty young 34, and was injured and is unable to work now. She decided to hire an injury lawyer who essentially isn't working very hard on her case and she wanted to know if I could help. Her father had died and her mother is around 67.

So the loss of her income put a real crimp in their finances. I loaned them some money about a month ago, and yesterday she called and asked if I knew of any places they could go for public assistance. Previously I urged them to get food-stamps which they did, a whopping $160.00 a month! I also told her to try and get disability. Since her injury is relatively new, she was turned down.

Now it seems they have gotten behind on mortgage payments and I again loaned them money (which I don't really expect to get back) as foreclosure is looming. By April 1 they will be 3 months behind. They visited Salvation Army to see if they could get monetary assistance, they in turn told them to contact the Catholic Assistance Program who told them they were low on funds and couldn't help them either.

They referred them to a person who would help them by offering them something called a Reverse Mortgage loan!! Has anyone ever heard of this??

Seems they take on the mortgage payment, but when the owner dies then the survivor will then have the option to get a mortgage or the home will be forfeited to this company. Considering the fact that the girl will probably be on disability (hopefully) she won't be in any position to buy the home then!

This is a prime example of what is happening to the less fortunate in America today. So I think perhaps they should try to file bankruptcy. Does anyone else have a better idea? I can't keep giving them money and it seems financial aid is drying up for those unable to pay. The mother has a heart condition and has SS, but less that a $1,000.00 a month. Hardly enough to live on.. and no health insurance.

I feel so bad!! How long is it going to take for the "red-staters" to realize that this could be THEM!!

HELP!!!!

[beam me up scottie]

1. I'm trying to find out more on the reverse mortgage but

here's info from AARP website:

http://www.aarp.org/revmort/

[beam me up scottie]

2. I had a friend in Vermont who ran into the same problem.

She had a lazy lawyer who was dragging his feet, meanwhile her kids were going hungry. I sent her to one of those horrible ambulance-chasing law firms that always advertise on tv at 3am and have their photos all over the telephone books. It worked, she had a settlement within a month. I don't know all the details but it wouldn't hurt for her to see another lawyer.
Just my .02

[FloridaPat]

3. Reverse mortgages are for people over 62. I haven't heard of them

for younger people. Interesting. It's a neat idea I think. The bank basically buys your house and pays you so much a month. For an older person it would be for the rest of your life. I guess not a bad idea, because if there really is a housing bubble, she should be in good shape.

What state is she in?

[ChiciB1]

8. It's Florida...

But, she wants her daughter to have the house. It's not new and she's re-financed a couple of times. This is not the way to go as she has used up her equity. Re-financing again only adds a higher payment.

It would be perfect if she didn't care what happened to the house when she dies. Because of the accident and the injury, the daughter is going to need a place to live should she pass away. And the daughter has lived there all her life, so the home is at least 35 years old.

They told me today that they were about 3 months behind on everything! They have no central air or heat. Good in the winter months, but pretty bad in the summer. It's really hot and humid as you must know.

Thanks for the info.

[Tansy_Gold]

11. Reverse mortgages can be devastating

They only work at all if the house is owned free and clear of debt, so property with a couple of refis and a substantial mortgage would not qualify.

The bank that does the reverse mortgage does indeed pay the homeowner, but they don't pay anything even close to full market value because eventually they're going to end up owning the house and will want to sell it for a profit. Some reverse mortgages only bring 50% to 75% of the market value of the house.

Because the funding institution does not want to have their money tied up for 20 or 30 years, most reverse mortgages are for a very short period of time. My husband's aunt had a nice suburban house all paid for that she intended to leave to her daughter as compensation for caring for her aging parents. Needing funds for health care, she chose a reverse mortgage and ended up losing the house in less than 10 years. She is now stuck alone in a nursing home, mentally sharp but needing physical care; her daughter, now disabled, is alone in subsidized housing. Had they not chosen the "reverse mortgage" route, they would still be together in a home of their own.

I would never recommend this as a solution. As far as I can tell, it's just another scam for the banks to screw people out of their lifelong earnings.

[FloridaPat]

12. My brother is a very good liability lawyer, but he lives in New York.

Best of luck to her though.

[beam me up scottie]

4. Send her to The Florida Association for Community Action

Local Community Action agencies are wonderful. They can help keep her afloat until she can get regular checks. Here is a link (assuming she lives in Florida)

http://www.faca.org/

[ChiciB1]

6. Yep, It's Florida....

Thank you so much. I'll check it out tomorrow.

Got my fingers crossed since I've parted with about $1800.00 already. But I didn't mind so much because they really needed the help and somehow it made me feel better.

I can only hope there's some relief here.

Thanks again!

[beam me up scottie]

5. Have her also contact the local United Way.

Try posting this in the State and Country forum, there could be a wealth of info and help just around the corner.
If I think of any more I'll PM you.
I hope things work out, let me know what happens. I get so upset when I hear stories like this because I am one paycheck away from being out on the street myself.

[ChiciB1]

7. Another Good Thought!!

Didn't even think of that one!

[beam me up scottie]

9. She could do a lot worse. She's lucky

to have a friend like you.
Unfortunately I think you're right about the red-staters not understanding that this could happen to any of us. There is no safety net for those living from paycheck to paycheck. And we're supposed to be able to buy health care and retirement accounts? With what, our stacks of unpaid bills? The fascists in charge not only don't understand, they don't care.

[ChiciB1]

10. AMEN & KICK!!!

It's becoming more and more of a looming "disaster"!

[beam me up scottie]

13. Any chance a local newspaper or tv station

would be interested in a "human interest" story?
and Kick!

[ChiciB1]

14. Funny You Should Mention That

I WAS thinking about taking up a collection, but that runs into many obstacles. Such as, well THEY aren't the ONLY ones in the same predicament.

But a human interest story would be beneficial and perhaps "eyeball" a growing problem. I only have one other BIG problem... this county's representative is Katherine Harris and it would be like pulling teeth to get coverage. However, I think I will call them.

I recall contacting numerous local and state agencies last year when we had the Carlie Brucia abduction and got NOWHERE! My premise was that while the interest was HIGH during and right after the abduction and death, I wanted to see if we could start some kind of warning system to keep it on the front burner year round. Something like a permanent sign that would be put up as a reminder at schools and places of interest. It was shot down before it got off the ground.

I was told that if they did something like that for one topic, then they would have to consider everyone else's "pet peeves"! I NEVER felt it was a pet peeve, but they were NOT INTERESTED!

I have given them all the information you suggested and did searches for any other agencies that would be helpful AND I did suggest that they NOT do the Reverse Mortgage thing. I'm going to wait a few days to see what shakes out of the tree.

Thank you again for all your help and continued interest. You sound like a very caring and UNDERSTANDING person.

It's just too bad we can't stop the train wreck before it gets here.

[beam me up scottie]

15. Yeah, too bad it's not an election year,

the politicians would be lining up to help poor people, even a reptile like harris.
Hmm, I've never heard of calling interest in missing children a "pet peeve". More of that "compassionate conservatism"?

I just hope when my train wrecks I'll receive the same support you've given to that family.


I will keep you and your friend in my thoughts and if I hear of anything else that could help, I'll PM you.

[ChiciB1]

16. Thanks!

I appreciate it. Not Compassionate Conservative, just trying to protect my grand-kids! I'm SOOOOO Liberal!

You know kids DO forget so easily!