Who should sell house we cannot afford?

[Tom]

My mom is widowed at almost age 80. My mom has a paid for house but no other assets and owes $30,000 in credit card debt. My mom said she has Alzheimer's a few years ago. My mom lives with me and my brother that don't work due to mental illness. I have to send in bills for mom and it worries me to see the expenses when it shouldn't. The credit card minimum payments are $700 month. My mom said I could sell house due to having power of attorney but I don't feel I could afford to support myself. Doesn't it sound like the house should be sold and who should to action to start the process?

[Pascal the Gambler]

Your ability to support yourself isn't the issue. Mom's house, mom's bills, mom's money, do what mom says.

[realtor.sailor]

If your mom has been diagnosed with Alzheimer's then she's not competent and cannot sign a contract to sell. You will have to petition the court to appoint a guardian. While a family member can be a guardian it's not recommended. Talk to an attorney who specializes in elder law.

[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.