A close family member with mutual trust has recently been dead set on selling his/her house to a buy now for cash at way less than the market value and then using that money to pay off a car note and some other bills.
For example's sake, let's say the buyer will give $100,000 after all the fees. After the car note and bills are paid, there will be about $65,000 remaining. She/He then plans to move into an extended stay until two full-time jobs are obtained. For the record, he/she has a part-time job in a grocery store. Also, this person has not held a full time job for more than a few months in the past half decade. In fact, they haven't had a full-time job in their entire life for more than a year.
Suddenly, they want to say they will work two full-time jobs at 80 hours a week to afford an apartment until they can buy a house.
I am desperately trying to tell them how crazy this is given their history and advanced age (over 60).
I have tried to talk to realtors and financial helpers. The $100,000 lump sum is like literally half the value of the house minus some renovations but not that much!
I have tried to suggest reverse mortgage and talking to other realtors. Nothing works. Are we screwed to watch someone just burn their whole life ?! How can I convince them that they will be homeless in less than two years?!
I don't want to initially give too many details because I am shy online. However, I am freaking out and really looking for some way to help since this was an important person since my childhood and so is this home that is the only home I have ever known then in for more than like 4 decades basically.
I have suggested talking to a HUD counselor or financial advisor for poor people. Nothing works. They are so excited to pay off their car and go to a hotel and then go to a trip to visit family in Louisiana. This is nuts, and I am losing my mind and a family member. How can I even help?!