short sale vs foreclosure for a loved one?
Need some advise on my mom’s home. She hired a firm to do a modification for her home loan payment back in Sept of 2010. Modification went to the lender for review, still waiting to hear back. Was served with papers for complaint and summons from the bank. She has dementia and is not mentally stable to stand in court to represent herself fully or answer questions appropriately so question is, being I am her POA, should I just consider going for a short sale and be done with her home and avoid foreclosure or proceed with the nerve wracking answer and motion deal to set the foreclosure intention back some in hopes the modification will be decided in her favor by then? It’s very nerve wracking. Also, if she has her name on another property but her son is mentally disabled and has a reverse mortgage out with a different lender on that home, (I am his guardian), can the bank take this property as well if her original home goes into foreclosure? I was told being her son is mentally disabled, they can not take a home away from him or me for being his care taker but not sure just how true this is. This is in the wonderful corrupt state of New Jersey by the way. Any advise or suggestions would be greatly appreciated. This is such a stressful situation to deal with. Please help!! Thanks so much for your time….