Overhaulin'

My mothers financial ruin, and how to fix it?

My mother had a house that she had a good mortgage on. Had to go bankrupt due to her ex husband. Didn't do it fast enough so they started taking it out of her wages. She was bad with money in the first place - but she always had what she wanted, so having someone take money made her spend the same/get behind. And before the economic/mortgage crisis happened she got to a point where she was close to being foreclosed on by the mortgage company - and she had taken out a second mortgage. The owner of the second mortgage apparently hired some people to say they where helping - but they spent about 4 hours asking her to sign paperwork to sign over her house free and clear so they could "put it back into her name"... and they told her they where also going to hand her 15,000 with the new mortgage so she could catch up. Instead they had her sign the paperwork then brought the 2nd mortgage holder in and had her sign some/signing over the house - and having the lady who owned the 2nd mortgage walk onto my moms front lawn and say "this is my house, and your my renter", after my mom found out that her house was for sale the next day. Anyways, long story short - she lost the house, plus they charged 1500 every month for rent. So they got her for the house+equity free and clear+30-40k in rent and fee's. Etc etc. And now my mother is stuck with no house - they sold it within a week when the mortgage crisis was starting. She took out payday loans that are in excess of 20k and has other loans all over - lost her cars/had them charge her for them when they sold at auction. So my question is - how do you get out from under a $20,000 payday loan? They take it out of her wages - 300-600 every 2 weeks. And she has nothing to show for any of this. A 150k house, more than likely 30-50k in debt. She got a new house with money from her 401k, but shes still having the same problems - wages going away every week, etc. I'm sort of clueless on what to do with her, she gets behind on all her bills just hoping to get ahead - but I can't see her getting ahead, but she seems intent on the fact she can. Even tho she has her car outside broken - a junker - electric going off in a few days - and 3 dollars for bus fare for the rest of the week.

Public Comments

1. I know you want to help your mom out but she has to learn herself. She should talk to a bankruptcy attorney and probably stay away from credit going forward. It sounds harsh but credit and home ownership are privileges and quite frankly not for everyone. She needs to rent and pay cash until she learns for her sins of the past.
2. Filing bankruptcy and living in an apartment is all she can do. It seems to me like you are destined to be her caretaker for the rest of her life or maybe yours. Sorry to hear about your problems.
3. Try your luck for debt settlement. This is the only way I think left in your situation. Visit this site http://911fordebt.com/?affid=4601 and fill out their contact form with correct information. Let them contact you. May be they can help you in getting you out of this situation.