post-house sale advice

[lcuervos]

Hello,

My mother recently sold her house and I am trying to help her figure out what debts to pay off, which to try and settle for less, and which to not bother with now or at all.

She is looking to get another property (maybe a 15yr fixed mortgage?) and so far has a credit rating of 716, but according to the report I see the bank payoffs after the sale of the house have not been reported. These payoffs came out to about 95K. Her husband died and much of the debt is under his name, however I think due to the state she lives in, the debt is considered hers as well? The debt under his name does not show up on her report.

 

After the sale, she has about 115K to work with, but with these remaining debts:

a private loan for 10K, no interest

~4000K owed to plumbing company for repairs

credit cards: ~11K in her name on 3 cards, ~1500K in husband's

~1200K owed to hospital

 

All of the above was her now passed husband's except the 3 credit cards mentioned. In order for her to successfully purchase a new home, get rid of as much debt as possible, but still try and have something saved for emergencies or to use otherwise, what would you suggest?

 

Is it worth seeking paid professional advice? Is there a better place to post this?

 

Thanks for any and all help.

 

L.

 

 

 

 

 

[MarvBear]

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[hegemony]

On 3/7/2022 at 5:48 PM, lcuervos said:

Hello,

My mother recently sold her house and I am trying to help her figure out what debts to pay off, which to try and settle for less, and which to not bother with now or at all.

She is looking to get another property (maybe a 15yr fixed mortgage?) and so far has a credit rating of 716, but according to the report I see the bank payoffs after the sale of the house have not been reported. These payoffs came out to about 95K. Her husband died and much of the debt is under his name, however I think due to the state she lives in, the debt is considered hers as well? The debt under his name does not show up on her report.

 

After the sale, she has about 115K to work with, but with these remaining debts:

a private loan for 10K, no interest

~4000K owed to plumbing company for repairs

credit cards: ~11K in her name on 3 cards, ~1500K in husband's

~1200K owed to hospital

 

All of the above was her now passed husband's except the 3 credit cards mentioned. In order for her to successfully purchase a new home, get rid of as much debt as possible, but still try and have something saved for emergencies or to use otherwise, what would you suggest?

 

Is it worth seeking paid professional advice? Is there a better place to post this?

 

Thanks for any and all help.

 

L.

 

 

 

 

 

 

What state? I assume all debts are current and not in default? Why would she want to try to agree to settlements if she has the money to pay? Or are these bad debts? If so, are they past the SOL for her state?

 

I would pay the credit cards, hospital, and, if it is to a family member or friend, the personal loan asap.

 

Is that a typo? 400k for plumbing? I'll assume you meant 40k. If 40k, pay it before it goes bad.

[lcuervos]

3 hours ago, hegemony said:

 

What state? I assume all debts are current and not in default? Why would she want to try to agree to settlements if she has the money to pay? Or are these bad debts? If so, are they past the SOL for her state?

 

I would pay the credit cards, hospital, and, if it is to a family member or friend, the personal loan asap.

 

Is that a typo? 400k for plumbing? I'll assume you meant 40k. If 40k, pay it before it goes bad.

the state is Texas, no debts are in default.

 

she has been paying minimum payment on the cards, and the others (medical, personal loan, plumbing) are within 4 years, so it looks like not past the SOL.

 

I did read that settling for less can negatively effect the credit score, is that what you mean?

 

yes, sorry a typo, 4K for plumbing.

 

so it sounds like your advice is to pay everything off in full asap, even if the debt is in her deceased husband's name? that makes sense, I am just trying to get other opinions, since I am not very experienced, or well versed, in these situations. thank you.

[centex]

The executor of the estate should have notified anyone who held claims after the death.  Not all debt falls to the surviving spouse.  Contracts matter.  Agreements matter.  Who handled the estate?  Pony up for an hour of their time...seriously.  It will be the best few hundred bucks that gets spent.