My dad and his wife are having financial issues. They live off social security only. After the recession, they lost their jobs and house so I offered to use their funds to buy a house in my name as they no longer qualified for a mortgage. It was quid pro quo as they were able to get a fixed housing payment for the remainder of their lives and I was able to build equity. It worked out for them as similar houses in the area are renting for $1850. They pay me $900 + $150 HOA. Mortgage is $954 so I pay $54/month into mortgage too.
The house currently has about $75,000 in equity.
My dad has always been awful with money management his entire life. Last year, he asked me for $5K, which I declined to give him. I asked him to share his finances with me so we can figure out a solution together. He never did. Here we are a year later, and he asked me for $1,000 or else his checking account will be overdrawn. In addition, he asked to decrease the rent he pays me from $900 to $500 for "6 months or so" so he can catch up on his credit card debt (all his cards are currently maxed out). I once again told him that the only way I will give him the $1000 is if he shares his finances with me so we can figure out what the problem is, as continuing to ask me for money is not the solution. It's just a band aid and I prefer to get to the root of the problem. He blew through the $2400 COVID stimulus on who knows what. I feel he should just declare bankruptcy instead of trying to catch up on the cc debt.
I recently got quoted to refinance the home, which will save $175/month, and with the way the loan closes/timing, we would be able to skip 2 months of mortgage payments, essentially saving him $1800. Him and his wife are currently on title (not on the loan), and I told him I would move forward with the refinance IF they get off title as after they pass, I don't want their debts to become liens on the house/estate. They plan on living there until they pass, and there is literally no reason for them to be on title. He has yet to respond to this possible solution to at least a bit of his financial troubles.
He's in his early 70s, wife in mid 70s and neither are in good health but still trucking along. He's also a veteran. He's tried applying for SNAP last year, but he was turned down due to their income (he told me they JUST missed the mark).
She also has 2 daughters who are about 10 years older than me. He's the one who completely manages the money, and she doesn't even know of their dire situation (she's not the sharpest tool in the shed TBH). I told him that between the 2 of them, they have 3 children and it's not fair to put all the burden on me.
Are there any resources I can reach out to for assistance in either financial planning or government help? I'm still waiting for him to send me financials (not sure if he's going to but I made that a stipulation prior to me giving him the $1K,) but happy to answer any questions I can.
Thanks in advance!
Submitted August 10, 2020 at 06:54PM by stevie_nickle https://ift.tt/3fPNIVH