What should my mom do ?
She has $30k in savings, about $35k annually from ssi (She’s retired and gets a pension). But her house ain’t paid for she owes $1080 per month and she has $20k in debt of credit cards. Every few months she struggles to pay summer tax $5k and winter tax $1k. She’s 80. Can you please give some advice? Is there a way she can keep her house? She doesn’t want to move.
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The credit card debt is financially killing her. Otherwise she could get by. First thig she needs to do is NOT USE these cards any longer and pay them off as soon as possible. If this is impossible, perhaps she could look into a reverse mortgage if she has sufficient equity in her home. She could then use the funds to pay off her credit cards. Another option would be to use the savings and pay off the credit cards. She'd save $$$ in interest. Then, cancel the cards and don't apply for more. They've ruined many people financially.
The $35k is NOT from SSI, it's from social security. They are two VERY different government programs. SSI is welfare and doesn't pay nearly 35K a year, it's closer to 10K. But she is the person who has to set her spending priorities, decide whether staying in the house is worth more to her than having extra money for other things. If she gets 35K in social security, either she or her husband made VERY good money, but planned very poorly for retirement to be in this situation. Sorry, but I can't be real sympathetic.
Reverse mortgage. She would only have to continue to pay the property taxes, insurance, and keep up the maintenance. She doesn't have to make any payments on the mortgage. When she moves out of the house, the house is sold, the mortgage paid off and she (or the estate) gets whatever is left.
Take away her credit cards .
Downsize to a smaller house.
Btw, SSI doesn't pay someone $35,000 a year
SSI recipients get about $9600.00 a year.
Can she take in a lodger and use the rent towards the mortgage payment?
Well, that credit card debt is going to bankrupt her.
There's no way her savings are making her anywhere near the interest that the credit card debt is charging her. So, if she cannot go bankrupt or work out a lower settlement payment with the credit card issuer, then she needs to pay that off even if it takes 2/3rds of the savings to do it.
With a 35K income, paying 13K on the house shouldn't be that much of a burden. That still leaves her $22K a year on other needs.
What the heck are summer & winter taxes?
Sounds her first step is to cut up the credit cards.