What options does she have regarding a different loan or repayment schedule?
I’m worried about her ability to pay her debts as well as have money to live without the possibility of her defaulting on her home loan – and what that might entail. A: The simple answer to your question is that if your mother is unable to make her monthly payments, the bank has the right to foreclose. This means that a stranger – or the bank itself – will buy the property at a foreclosure sale, and your mother may be forced to move. This is the ugly reality of the current financial situation here in the United States. That does not mean that the bank will, in fact, foreclose. Banks do not want to own houses, because they would have to pay the real estate taxes and insurance. Although speculators often attend these foreclosure sales, quite often the bank is stuck with the property. You should explore a number of options. First, talk with the bank and see if you can work out some form of relief – either by way of a modification of the loan (a lower interest rate or a longer payoff time)
