I'm so sorry you're in that situation. My mother was in almost the same situation couple of years ago, except she had almost no equity in her house. She was also disabled and on SSDI. I tried to help her out, but ultimately, we came to the conclusion that she had to give up the house. She wound up filing Chapter 7, and was relieved of every debt she had. I got her on waiting lists for every subsidized senior housing building in the areas she preferred to live in. Within a few months, she had a nice new apartment, that was subsidized, so that she only pays 30% of her income each month for rent and utilities. Honestly, it was such a blessing in disguise. No more worrying about sudden repairs, or property tax increases, or hiring someone to mow the lawn or shovel the snow. She's debt free now, and able to relax and not constantly worry about money now.
Now, I'm not saying you should just give up your home. Definitely look into the refinancing, reverse mortgage, and Chapter 7 with a professional and see if they might be good options for your situation. I definitely don't understand why you wouldn't be able to keep your house if you filed Chapter 7, so I'd say you should get a second opinion. But, if you can't come up with a solution, hope isn't all lost. Check into subsidized senior housing in your area. When I called around, I was told the waiting lists were two years long. I put my mom on them anyway, and she had two places with openings within a few months. She's been in her new place for about a year now, and the bank actually still hasn't foreclosed on her old home yet either.
It looks like all you owe on your home is $58,000? Can your daughter go conventional to buy your home? That's only $2,900 down. Or can you and she refinance it together? Maybe her income would help offset your debt? Have your talked to a mortgage broker? They tend to be more creative than banks, so that might be a good idea.
Good luck, I hope you find a solution. Please keep us updated.
