Asking for a friend!

[Robin Morales]

Hello Everyone,

I will try to keep it as short as possible! Parents own a property in CA. The property is worth about 600k. They owe 217k on the mortgage loan and have about 45k in debt through CC debts and HELOC. They are negative cash flow as they cannot afford to pay debts and living expenses. They have not done a consolidation as they will not get approved and his father has a gambling problem. They once consolidated through a cash out refi however, the father continued to acquired debt through gambling so they do not want to do it again.

They are about 10 years from retirement. And have only about 80k for retirement in 401k. They live in the house with my friend. My friend has great score, makes great money, and has no debt. They would like to sell him half of the house while putting the whole loan under his name. Would this make sense? What are some scenarios you can see might benefit everyone. 

I apologize if this didn't make sense! would really love to help!

[Aaron K.]

@Robin Morales The problem is if they decide that the living arrangement doesn't work anymore, neither can exit if the other can't afford or doesn't want to buy the other half of the house, which seems like will be the case for the foreseeable future.  Seems like it might be time to sell the house and downsize, if the gambling problem is recognized, you might look into who has power of attorney over what to make sure gambling doesn't put anyone out onto the street.