Dad has underwater mortgage, can't make payments.

Hi - we may want to talk in person - this is a pretty serious situation.Do you want to e-mail directly or speak on the phone? bfrench@topflitefinancial.com or 501-276-6786. Our office is in Little Rock.

A deed in lieu of foreclosure would probably be your best option if the mortgage holder is willing to do it. As far as the power of attorney goes, there are several forms of it. I would suggest consulting an attorney on that matter.

I would suggest getting some professional legal advice from an estate planning attorney before making any decisions or talking with the current mortgage holder. There are some strategies you can take advantage of legally and you may also be able to preserve some of the family assets. Please feel free to contact me directly.ENG Lending, A Division of Bank of England, always puts your best interest first. We would appreciate the opportunity to serve you. Please visit us at www.cincinnatimortgagerate.net. You will soon find that we are so much more than a Mortgage Banker; we are a company that is dedicated to empowering our clients and referral partners. Don't forget to visit our Facebook Fanpage at http://www.facebook.com/pages/ENG-Lending-Cincinnati/171183536269710#!/pages/ENG-Lending-Cincinnati/171183536269710?sk=wallOr Call Anytime 513-403-6260

More than likely, the lender will not do a deed in lieu of foreclosure. The best option is to short sell the home. As far as the power of attorney, you should consult legal counsel for questions regarding that.. WilliamAcres.com

HI-I would really recommend considering all other options first. Does your father have a place to live? If we can help please call America's Lender at 918.682.9037. Nick Moore

Think about Bankruptcy they will allow him to keep a goodly amount of what he has saved depending on the chapter he files. It will also take care of all outstanding debt. Excepting taxes and school loans. He would also get rid of any annoying 1099 or shortages that will be classed as gift and taxable in the fed's eyes.But in today's world, not only is it likely that the house won't sell for enough to pay off the first mortgage, it is also likely that junior mortgage holders will not get any money out of the sale. If that happens you still owe them money. They have the right to sue you, or to turn it over to a debt collector who can use any number of methods to collect the debt. They can also issue a 1099 for the imputed income. Again, this is too complicated to discuss here, but it is becoming increasingly common for creditors to send a 1099 when they can't collect the debt, and in most cases you have to count that as income for tax purposes that year. That can be huge in the case of a foreclosed home. There are sometimes ways to deal with a 1099 in this situation, but you have to act quickly. Also, filing a bankruptcy before the foreclosure happens prevents the 1099 problem completely. Feel free to call me 925-788-7483. As with all advice seek Professional Help and remember its usually money well spent.