Backstory: My dad currently has 2 mortgages out on his house, one for roughly $105,000 that is the traditional loan. Pay this off and you own the house. The second mortgage is for a business that he bought into, he has been working there for more or less his entire life and when they expanded to a new building (tool and dye shop) he was able to purchase part of it totalling about $80,000.
The $80,000 is the loan in question. It was a 10 year loan and it has now matured and the remaining balance of $68,000 needs to be paid off. My dad not being very financially savvy, never read what his payments were going towards and is now expected to pay the remaining balance in full. He does not have that money or anything really near that. When he tried to continue the payments the bank sent the check back to him and after going in and talking to them they will not take anymore payments unless it is the full amount. At this point he is considered about 120 days delinquent. He tried reaching out to other places, taking a loan out to pay off this loan and was declined due to his poor credit score. Is there anything he can do? I am reluctant to offer to co-sign a loan for him because of how it'll affect my credit.
Financial info: -1st mortgage - $105,000 -2nd mortgage - $68,000 - Home value - roughly $210,000. Has not been appraised in a while though. -Owes about $8500 on his car, which is a '15 Kia Soul. -Has a mortocycle which is being paid off (I can get amount if important) -I don't believe he has any credit card debt. -$50,000 in a 401k plan -He still owns the equity in the building he works at, but is trying to use that as a retirement plan. I am unsure how much it is actually worth right now.
We are trying to figure out if there's anything he can do, whether it be to elongate the terms on the loan or possibly take another loan out to pay it off? He is worried about foreclosure, is that possible? Bankruptcy?
Is it worth consulting a debt specialist/ lawyer?
Tl;Dr - Dad owes about $68,000 for a matured loan, cannot afford to pay it. Bank has stopped accepting his payments.
If there's any information that may be helpful, I will try to monitor this the best that I can and get back as quick as possible. Thank you!
Submitted December 01, 2018 at 06:33PM by skiddmarkk https://ift.tt/2KOFYpd
