I'm thinking about liquidating my Roth IRA and taking a loan out against my 401k to pay the property taxes my cancer stricken mom owes on her home. She's several years behind, and the county is foreclosing on it soon. She has no savings besides maybe home equity, and no income because she's currently on FLMA until the doctors can figure out why she's still in pain months after the surgery to remove her tumor.
My annual budget without attempting to support her leaves me saving roughly 50 percent of my income, so I can probably recover from it, but it would drain everything I've got. Do I take what I've saved for retirement thus far to satisfy her creditors, or should I just let the county foreclose and help her out afterward?
EDIT: I'd written up a detailed question but felt it got quite long. But I suppose brevity isn't always best. The facts:
- She has a fully drawn HELOC for $100k at WSJ minus 0.25 percent. This is a ticking timebomb when it goes into repayment, but not yet a problem. One bedroom apartments in the area cost roughly what she pays to own her home after taxes and insurance.
- The house itself was appraised at $150k when the loan was made, but the house two doors down with a similar floorplan has been on the market for months at $100k and not sold (I think something's wrong with that house), and the house between them just went on the market at $149k. There could be money left over, there might not. She lives in a recourse state, so she can't just walk away.
- The county has shown no willingness to accept payment plans, and in fact recent law mandates the newest debt gets paid off first.
- I've got at least 30 years until retirement.
- I live and work three hours away, renting a room from a house, so she can't just move in.
- I'll probably be on the hook for her living expenses left unmet by food stamps and other community support until she can return to work.
- She's not paid her mortgage in some time, thus ruining her credit score.