Need financial advice for my nanny with cancer

February 4, 2008 6:29 AM

My ex-nanny of 5 years is a legal immigrant (not a citizen) who recently got cancer. She lives in Northern Virginia, in the DC suburbs. She is no longer able to work. In fact, she struggles to drink a glass of water without throwing it up due to agressive chemotherapy and radiation therapy she is undergoing. So for at least the next few months, and probably the next year at least, working is not an option for her. Since the cancer is in her face pressing against her optic nerve, she will almost certainly lose vision in one eye, and maybe both.

She has health insurance, and was just approved for social security which will be about $900/mo. Unfortunately, her condo mortgage payments are $1400/mo with condo fees of $300/mo. She has $30K of debt from a home equity line of credit on a 2nd house (her family was living in it) which was recently foreclosed, and owes an additional $500/mo on that $30K. So quickly it is clear the $900/mo income won't cover her $2,200 expenses. I can help a little, maybe a few thousand dollars, but I can't help enough to cover all this.

So I need to find help, preferably in the form of a person who can start advising about options, such as bankruptcy, debt reconsolidation, etc. It would be great if this advice was free, but I'm more than happy to pay for this. I feel that money spent on this advice is much better spent than giving her inadequate cash to cover her monthly expenses at the moment.

Do you know a person who works in this arena? If not, can you recommend a good strategy for finding this financial advisor for an unhealthy immigrant in financial distress?

posted by phildog to health (5 comments total)

www.naca.com might be able to help with a refinance and elimination of that equity line of credit (2nd mortgage) by rolling it in to one affordable fixed rate payment. NACA is a housing advocacy group that also makes mortgage loans from a settlement they won against Fleet Bank for a predatory lending lawsuit a few years ago. However, the fact she owns a 2nd home makes her "rich" and renting to family at probably a reduced rate is not a smart fiscal move because the IRS doesn't give any extra credit (deductions, depreciation) if someone isn't collecting market rate on a rental unit. NACA also will only work with a primary residence. She may not qualify for their assistance until she gets rid of that 2nd residence. She will probably find that to be true with any social service agency she contacts right now, too, unfortunately. She might not feel "rich", but owning multiple properties puts one in a whole different category when asking for financial assistance. Good luck.
posted by 45moore45 at 6:53 AM on February 4

However, the fact she owns a 2nd home makes her "rich"

Uhh...

home equity line of credit on a 2nd house (her family was living in it) which was recently foreclosed

It sounds like bankruptcy is the way to go here. With the new bankruptcy laws she'll need to do 'credit counseling' first though.
posted by delmoi at 7:10 AM on February 4

I can't provide any suggestions except to say kudos to you for helping her out.
posted by dirtynumbangelboy at 7:12 AM on February 4

Capital Area Asset Builders in DC might be able to point you to some resources in NoVA.
posted by yarrow at 8:04 AM on February 4

What type of cancer does she have? Many cancer organizations/foundations (they're usually identified by tumor site, e.g. Multiple Myeloma Foundation, Leukemia & Lymphoma Society) help cancer patients with their finances.
posted by desuetude at 11:42 AM on February 4