I have been consulting a client whom I have known for many years which prompted me to write about her experience.

My client lives in a house that is no longer worth what she paid for it. Like  many Americans, she bought her home when the market was high, her family has grown and she needs a larger house. She is able to make her payments but her house is worth less so if she did sell she would be facing a short sale. Her credit for 3 years would be affected, so she would be unable to buy now.

We have discussed all sorts of methods and choices. Once choice is that she has a relative who has a small mortgage on her home with alot of equity. If that relative sold her home and they moved to a new home together then they would be able to purchase. That would still mean doing a short sale on her current home or choosing to rent it out.

You may have guessed it! Yes, that other person is her elderly mother! We discussed them finding a larger home for all of them. That got me to thinking, what about all of those people in similar circumstances with NO RELATIVES that could help like this? [Read more...]