<p>Okay, so I suppose I'm going to have to explain the house situation. Please no judgement, I don't know if this is the best place to explain, but I'm in desperate need of help. </p>
<p>My mother was murdered in the house by my father. That's why he is not "around" and that's why the house isn't selling. The house is actually valued at $3750,000 taking into consideration that nobody's buying houses these days. The house had been lowered a lot in the previous year, but nobody in the community wants to live there because everybody knows what happened. The house was built in 2000 and if we lower the price too much, we won't be able to pay off the loan my parents owed and will make no profit off of it at all. My grandpa (mother's father) is in charge of everything and has hired a lawyer already who basically said we have to wait for it to sell or my father has to claim bankruptcy in prison (this was a while ago, I don't know if he can still do that since his name is no longer on the house). We've tried renting it out, but again, nobody wants to be there. My grandparents already explained they wouldn't be financially or emotionally stable enough to live in the house, so it just sits, draining the money in the bank. Some of you are probably thinking that with a house that new and such my parents would have left me and my brothers more money in the bank, but that situation goes as follows... my dad got half of the 100K (which he wasted on defense attorneys), and my brothers and I the other half. That is the money that is being used to keep the house running, repairs, and my grandparents took out some to buy me a car and pay off my parents' so my brother could drive one. That money is almost completely gone now and the house is still not sold!</p>
<p>I know it sounds like a sad story or whatever, but will the financial aid people take all this into consideration? The 30K that I can't touch until I'm 18 really will be all the money that I have for my entire college experience. If colleges expect me to put that all towards undergrad school, it seems like grad school is completely out of the question.</p>
<p>I'm so sorry, I understand why the house is so hard to sell.</p>
<p>Your situation is unusual enough I find it hard to believe that the folks at financial aid wouldn't take pity on you, particularly at smaller colleges where they may have more flexibility. </p>
<p>As for the house. For the right price, any house can be sold, but you may have to short sell it at a loss. Not fair, but I'm not sure you are going to have a choice. If you keep hemorrhaging money you're effectively selling it at a loss anyway. Murder</a> House / How a house with "history" became a dream come true</p>
<p>senior09 you're having to deal with a lot of issues right now that are very difficult, and I give you a lot of credit. Asking for help here is a good start, as well as finding an adult you can trust to help you navigate the college application and financial aid process.</p>
<p>One thing that might help set your mind at ease is how your home equity will factor into the financial aid equation. For schools that only require the FAFSA form to be filled out, home equity isn't included in the calculation. For schools that require Profile (like Northwestern? check their website to confirm this) then home equity must be included. However, from what you said about the house and how if you lower the price too much you won't even be able to pay off the existing mortgage, it's likely you have very little equity in the house to begin with. This is the case, unfortunately, for many people around the country who, for various other reasons, have seen the value of their homes drop dramatically. So even if your house is on the market and has a selling price of $250,000, this is not the number that's used to determine your assets for financial aid. Only the net equity in the home, which might even be negative in the worst case, is what's used by Profile.</p>
<p>I once bought a house that was only a few years old and had a history similar to yours. It had been vacant for a couple of years and I bought it for a good price. Houses like yours do sell but they require a substantial price reduction from market value. I would forget about any perceived equity in the house and try to sell it for exactly what's owed. If that doesn't work, I'd let the bank foreclose. Getting rid of the house will help you move on and will stop the drain on your other resources. The equity that might exist in the house if it did not have the history it does is not equity in your case. From an emotional perspective, you and your grandparents need to get out from under this burden, even if the perceived financial loss is great.</p>
<p>I am not expert on financial aid but it seems to me that FA officers would be very willing to work with you if you explained the situation.</p>
<p>Another thing: About graduate school: some graduate programs totally fund the students, others do not. MA. degrees often do not. Many PhD programs do, through a combination of outright grants for the first couple of years and teaching assistantships (in which case tuition is usually waived) for the next few years. Law, med and business schools are less likely to give fellowships. So you may not need to worry quite so much about grad school right now.
Are there colleges that are within the appropriate distance that give merit scholarships? If you think you would be eligible for NW, I expect you might qualify for merit scholarships at some institutions.</p>
<p>You poor kid. That is just a terrible situation for you and your grandparents, and I certainly understand why they don't want to live in the house.</p>
<p>I gather that it has a mortgage of about $100K? I think that you and your grandfather should immediately consult a good fee-based financial planner. (I know several people in that profession who are kind, intelligent, and highly principled. Unfortunately none of them are in IL, but there must be some of their type around your area.) At some point you are going to run out of money to support the house. You don't want to be in a situation where it is taken for taxes or foreclosed upon. Instead of spending $10,000 on mortgage payments and utilities, you could spend $5,000 on fresh paint and staging. Even if you sell it for $200,000, it would probably be better than a foreclosure. The planner can help you figure out where the tipping point is for you, which will help you set a timetable and a price that works for you. Again, I suggest making the house very attractive, freshly painted and cheerful inside, flowers outside and it, and the like, and pricing it aggressively. You could even ask a clergy person of your faith to perform a cleansing/blessing ceremony of some kind, and your realtor can include that information when also forced to reveal the sad history. Someone will buy it. </p>
<p>A fee-based planner can also help you figure out where to put your money to maximize your financial aid position. Look for someone who is experienced in that area.</p>
<p>I do think that schools are going to be more willing to work with you, but I think that they will still expect you to contribute assets. Generally, I think that they try to avoid being in the situation where they say that this person's painful history justifies setting aside the usual expectations, while this other person's painful history does not.</p>
<p>vballmom, I've been assuming that the house would not be treated as the family home, but as an investment property or second home because the family is not living in it. If colleges WILL treat it as the family home and not go after the home equity, then it could be disadvantageous to realize the $$ from its sale now. It may make sense for the OP's family to rent the house at a rate just high enough to cover the mortgage payments and hold onto it. After the kids have graduated from college, or when sufficient time has passed that colleges are no longer willing to regard it as the family home for financial purposes, THEN sell it. The adverse history will have faded to some degree by then also.</p>
<p>Okay, I figured the situation would be bad, but this is a heavier burden for you than I could have imagined from your first post. I absolutely think you have great stats and will be accepted into a number of schools. The fact that you have managed to do so well under such trying circumstances will sit very well with admissions people. They will want you and then, hopefully, merit money will follow. Not necessarily at a school like Northwestern, but certainly somewhere near where you want to go. If you will have a car, then perhaps you could include nearby states like Indiana in your search. If I were you, I would call the admissions reps at schools you are interested in, introduce yourself, and ask them how you should go about this FA process. Your circumstances are uncommon and after they hear your story, I am sure they will help explain the best course of action for you. If you do not want to call, have your GC or a trusted family friend/advisor call on your behalf. You will have the prayers of many on this board following you, I'm sure.</p>
<p>Check out University of Wisconsin if it's not too far for you; it's a great school. I don't know how generous its FA is but at least it isn't nearly as expensive to begin with. You do have UIUC as a nice backup.</p>
<p>senior09, I went over and looked at your stats on one of your other threads. It strikes me that you should definitely consider applying to a few LACs that are SAT-optional--since your ACT is probably your only comparatively weak point when looking at very selective schools-- and generous with $$. I think that your URM status, combined with your personal history and the way you have dealt with it, plus your excellent grades and rigorous course selection might well make you a very attractive candidate. And that kind of school would prepare you well for any number of graduate studies. I'd suggest looking at Bowdoin and Bates, just to name two. Especially since you will need good aid, I think you should cast a wider net.</p>
<p>Every university and college tells applicants to write a letter explaining special circumstances. I suggest you apply to the colleges you are interested in and send a letter to the financial aid office explaining your circumstances. I know there is a small space on the CSS Profile with the title "Explanations/Special Circumstances." You should also put a short paragraph in this section.</p>
<p>Financial aid offices always consider unusual and difficult circumstances of student applicants. I would say your situation fits their definition.</p>
<p>I don't know what your religious background is, but you might consider a blessing for the home. It sounds like you live in a small community and when you have the house cleansed or blessed everyone will know about it.</p>
<p>There is information about the United Methodist Church ritual blessing here:</p>
<p>I believe the Catholic Church also has a ritual for blessing a home. A quick look at the internet confirmed this for me. The local Catholic priest might consider a blessing or cleansing of the home. </p>
<p>Believe it or not there are many who believe that burying a statue of St. Joseph in the yard of the home for sale also helps. There are articles on the internet about this - I read about it in a magazine or newspaper sometime last year.</p>
<p>A friend of mine whose family was from Eastern Europe told me his grandmother always blessed every place she lived. She even made a special visit to bless his dorm room.</p>
<p>I am so very sorry for your loss. This is a tremendously sad and difficult situation for you, your siblings, your grandparents and other family members.</p>
<p>Thanks everyone for taking the time to read and comment all of this. It has all been very helpful and I now realize that getting a financial advisor for college would be a good investment right now.</p>
<p>Westcoastmom, the house has already been blessed by two different priests right after the incident. Unfortunately, it doesn't look like it helped much... :-/</p>
<p>As for other colleges, I think I more or less want to stay within a couple hours drive from my home so I can stay close with my brothers (one who is only 8). So Wisconsin and Indiana seem kinda far right now.</p>
<p>Whereabout are you located in Illinois? On another thread, you mention liking UIUC, which, if I remember, is about 3 hours from Chicago. I know someone who taught at Northwestern and whose spouse teaches at Madison. Doable, but not on an everyday basis. Would your brother want you to come home every weekend? Every other weekend? Every other day?</p>
<p>senior09 - I contacted an individual who is considered an expert in financial aid and asked him if he would be willing to give you some advice. Here is what he said:</p>
<p>She should file the FAFSA as independent. (She should also contact the schools to which she's applying and ask for a dependency override. Technically the father is responsible for completing the FAFSA, but her situation is probably one of the clearest justifications for a dependency override. She should provide letters from social workers, police, guidance counselors or any other documentation from independent third parties who are familiar with her situation. If there is a court protection from abuse order against the father she should supply a copy of that as well. Likewise details of the father's incarceration, such as duration, etc. The goal is to demonstrate that it is unreasonable to consider the father as a source of support.)</p>
<p>Any cash support provided to her by her grandparents should be reported on worksheet B.</p>
<p>The house does not count for federal student aid and does not get reported on the FAFSA. For institutional aid it may count, but she should appeal that as part of the request for a dependency override and professional judgment. The grounds for the appeal should include the inability to sell the house due to the murder that took place in the house. </p>
<p>If she has little or no income and is eligible to file a 1040A or 1040EZ the assets are likely to be disregarded. If her income is under $50,000, assets will be disregarded. If her income is under $30,000 in 2009, she'll automatically have a zero EFC. She should be careful with regard to what income is realized in 2008 to avoid triggering these thresholds. </p>
<p>Her grandfather should talk to the bank that holds the mortgage to see if there are any options for selling the house to the bank.</p>
<p>So sorry about your loss. My sympathy to your family. </p>
<ol>
<li><p>Check a few of financial advisors. I have met all types of advisors, bankers, money people, and regardless on how they are paid, some are good and some are bad. </p></li>
<li><p>If you mother had died in an illegal act, the life insurance would pay only to certain people. </p></li>
<li><p>The House is a drain on assets. This must be stopped fast. The end result will be no assets and the bank foreclosing. </p></li>
<li><p>See a couple of Attorney. From the information given, it is doubtful that a financial advisor can do much other than to charge a fee for time. You will again find good ones and bad ones. </p></li>
<li><p>the various college saving plans: EE, Coverdell, minor accounts, trading accounts, UTMA, trust accounts, 529, annuities, CD's, all have advantages and disadvantages. As college savings programs go, a 529 is a one way street and deadend street should your plans change. Likewise for annuities. Until your family's plans are more defined, keep your options open. Whether you have $30K or not should not be the criteria you should base your future college plans or thinking a school will offer or deny financial aid.</p></li>
</ol>
<p>I'm just wondering about the asset thing. Assets are certainly not disregarded for students with parents whose income is under $50K or even $30K. (Neither the student's assets nor the parents.)</p>
<p>I certainly hope that senior09's assets are disregarded.</p>
<p>By the way -- don't worry about graduate school at this point. Undergrad should be, needs to be, your first priority. If you don't get that taken care of, there's no point in thinking about graudate school.</p>
<p>I don't know what kind of graduate school you're thinking of -- law? medicine? psychology? -- but many people work for a few years once they get out of undergrad. That's when you can save big bucks for grad school, and become more sophisticated about how to get that paid for. Just worry about your undergraduate schooling for the time being. You've got enough on your mind!</p>