Posted by Nate(DC) on January 17, 2003 at 20:45:33:
I feel bad for her too, but in this business you will meet a lot of people you feel bad for and you can’t help them all.
If you wanted to help them all you would need to be in some other line of work like the priesthood 
But seriously, if you want to help her, give her some money or let her stay in your basement. But don’t buy her house. Whatever you do.
NT
Tough financial situation…need advice…(long) - Posted by Jennifer
Posted by Jennifer on January 16, 2003 at 22:02:25:
I got a call from a girl today in trouble with her house. She is only 20 and inherited the house from her father. She is 5 months behind and doesn’t know what to do. Her is is appraised at $125k, but she owes $119. Not much room there.
She also has Terrible credit- the last 2 years she racked up about $25k in credit card debt. There are 2 judgements against her and all the rest are in collections.
Problem- is I can L/O her house- but that leaves her no where to go. She won’t qualify for a new loan (even a small one) because of her credit. She checked several rentals- but they also checked credit and turned her down.
I don’t know what to tell her on this one. She is also wondering long term what to do. Should she file BK and start rebuilding her credit? How long before she can get a mortgage after filing? OR she said she was considering getting a 2nd job and just paying off all the debts- although that would take her a while and she really wants to get on the strait and narrow quickly. THe mortgage co. will not work with her.
What can I tell her? I am in the real estate biz. Not necessarily the financial biz…
Any help is appreciated. I’d like to be able to help her.
Jennifer
Re: Tough financial situation - Posted by Sean
Posted by Sean on January 17, 2003 at 09:47:35:
Tell her, talk to an HML, find a nice rehab, buy it right, fix it up, flip it and get a 10-20k+ payday…
Seriously though, unfortunately she is likely pretty hosed. You say she does have a good job and a car, that’s a good starting place, sure better than some people.
BK may be the answer, and as to keeping a roof over her head, may not be the greatest, but sleeping rooms and/or roommate(s) are always a possibility.
How many bedrooms is the house? Maybe she can take on a border to help with bills for a while… or at least help bring the loan current.
Best of luck
Re: Tough financial - Posted by Nate(DC)
Posted by Nate(DC) on January 16, 2003 at 23:28:57:
She’s hosed.
You don’t want her house, trust me. With $119K in debt, plus back payments, plus the judgements attached to it, it has negative equity.
And for that reason, no one else will want her house, either.
And she can’t move anywhere else.
So I guess she’ll need to move in with friends or relatives until she gets herself in order!
Sorry,
NT
Re: Tough financial - Posted by Jennifer
Posted by Jennifer on January 16, 2003 at 23:39:41:
I kind of figured as much- but was just hoping that there would be something. She has no family or friends- her father recently passed away. She has an old beater car and a pretty good job. She said she would probably end up selling her stuff and living in her car- maybe once in a while stay at a cheap hotel for shower and such.
I feel bad for her. Oh well. Thanks for the advice.