I’ll try and keep this as simple as I can. About 6 months ago, my girlfriends Mom passed away. When her Mom passed away, her Moms estate went in to probate which just recently completed. Her Moms estate has the family home which is paid off (worth about $60k) and a car which is worth about $4k. 3 creditors have put claims against the estate, one for $500, one for $1000 and one for $14000 which was a wells fargo credit card her Mom had when she passed.
My girlfriend isn’t currently in a job due to mental health issues and she has medical debt, so getting a loan to pay off those creditors to keep the house isn’t an option. It’s just her and her disabled brother that is living in the house. She has no other family to help her out.
Her lawyer told her that if she can’t come up with the money, the creditors will force the sale of the house. If worse comes to worse and the house has to go (which she absolutely doesn’t want to happen, as it’s been her home her entire life and her last memory of her Mom) she isn’t going to have anywhere to live. So if the house sells for $60k, after the creditors take the money that they want and after legal fees, she will come out with about $40k. Buying another house with $40k isn’t going to be possible, we’ve looked across her state (AL) at houses and they would require another $10k atleast for renovation.
My girlfriend was considering getting an apartment for a year with whatever money is left over after the house has sold and save the rest. She’s looking at apartments for about $800 p/m which after fees would be a down payment of about $11k for the year. Do you guys think their is a smarter way to do things? She’s just lost and I’m trying my best to help her. Any advice is appreciated