Who should sell house we cannot afford?

[Equality 7-2521]

I would recommend selling the house. This will remove the burden of property taxes and insurance and perhaps HOA fees. Use the proceeds to pay off the credit card debt, and put the rest in an account from which her other bills can be paid (perhaps where she has her Social Security direct deposited). This will leave her in a much better financial position and lessen the burden on you.

If she were still living there, she could look into a reverse mortgage, but the fees on those are higher than a normal foward mortgage (the kind you and I have). But it makes sense for some people.

Since she is not living there, you can also weigh the option of becoming a landlord. You would have to decide if you could charge enough rent to pay the taxes and insurance, and additional money which she could use as income to apply to the credit card debt and get it paid off. You would have to weigh the rent or sell decision based on the specifics of this house and its condition, and the market conditions in your area.