It is a mess, and not how I want to have to live in my retirement! I think my DH and I are doing pretty well for our 30s, but this has really motivated us to do even better.
Underwater on the mortgage...options? **Update**
- Thread starter rnorwo1
- Start date
It is a mess, and not how I want to have to live in my retirement! I think my DH and I are doing pretty well for our 30s, but this has really motivated us to do even better.
PMI is designed to protect the bank in the event that you default. It in no way is an insurance policy that protects you in the event of a default.
OP please be very careful with the advise you are receiving here. LA laws are very different from the rest of the country. Most states are based on English law whereas LA is based on French law. Please consult an attorney. When you are looking on line you need to make sure what you are reading is specific to LA.
LA law is different from all the other 49 states. An attorney will be essential to sort everything out.
If she hasn't already, she should check with social security to get the survivor's benefit and to apply for a widow's benefit. The funeral home director can assist with contacting the local social security office.
runwad
Dis Veteran
- Joined
- Jan 18, 2006
- Messages
- 4,280
Hey can I jump in here and ask a question. So if a couple has life insurance(separate policies for both of them) and the beneficiary is a spouse, can it be changed at a later date to have the children as the beneficiary instead of the spouse? Thanks
Darcy03231
DIS Legend
- Joined
- Nov 1, 2006
- Messages
- 11,245
Yes. The owner of the policy can change the beneficiary whenever they want. The only requirement is the beneficiary must be over the age of 18, or if not, the money has to go to someone over 18 in trust for the minor.
The details I provided are just the tip of the iceberg--but thankfully when I say we'll have to maintain the mortgage--I mean with proceeds from DMIL's assets--we don't have the money to pay his mortgage on top of our own. And thankfully, DH and I both have very good life insurance policies for ourselves, primarily to protect our kids. If anything, this situation has just proven that you really want all your ducks in a row to make things easier for surviving family members.
Absolutely! I was just hoping to get various ideas to make sure all options are explored. LA is a very different state, in many ways!
We also have an appt with SS but doubt she can draw anything until she retires in 5 years.
You can also name your husband as the primary, and then name contingent beneficiaries (i.e. your children) who would receive the money if your husband predeceases you.
Actually, I am not wrong. In some cases, life insurance policies are in fact part of an estate--for example, if the deceased person named her estate as the beneficiary. If the deceased named another person as the beneficiary then they are not part of the estate.
jgates
<font color=teal>Must vow NEVER to toggle the tags
- Joined
- Oct 12, 1999
- Messages
- 3,072
Except maybe in Louisiana, LOL..............I didn't think it worked that way either, but they have evidently found something with a $10,000 exclusion only?
My mother WAS able to get survivor's benefits when she was I believe 62? It wasn't a lot as dad didn't make a lot. But he earned more than she did when they worked so she was able to draw off from him at age 62 I think. When she became disabled the benefit did increase also.
Normal full retirement age will be slightly different for someone her age vs. someone our age. You can usually collect earlier but the monthly payment is not as high if you do. You would need to figure out how detrimental it would be for her to collect now. One of my friends didn't want to collect until around 65 because she would get (in her case) an extra $50 a month for waiting - however a few of us BASHED HER UPSIDE THE HEAD as she had to close her business (economy) & she was only taking home a total of around $500 per month in her part-time job. So obviously for her, getting the extra $600 per month from SS NOW was a definite no brainer. Otherwise she wouldn't have been able to survive. But each situation is different & you need to check with SS & analyze her situation.
My mother WAS able to get survivor's benefits when she was I believe 62? It wasn't a lot as dad didn't make a lot. But he earned more than she did when they worked so she was able to draw off from him at age 62 I think. When she became disabled the benefit did increase also.
Normal full retirement age will be slightly different for someone her age vs. someone our age. You can usually collect earlier but the monthly payment is not as high if you do. You would need to figure out how detrimental it would be for her to collect now. One of my friends didn't want to collect until around 65 because she would get (in her case) an extra $50 a month for waiting - however a few of us BASHED HER UPSIDE THE HEAD as she had to close her business (economy) & she was only taking home a total of around $500 per month in her part-time job. So obviously for her, getting the extra $600 per month from SS NOW was a definite no brainer. Otherwise she wouldn't have been able to survive. But each situation is different & you need to check with SS & analyze her situation.
If the woman takes a widow's benefit now, she can still collect her own benefit later on (at full retirement age or later up to age 70). It is essential to get in touch with social security. They will work out the various benefit levels for her. Taking a benefit on the spouse at an earlier age does not diminish her own benefit at full retirement or later.
dfchelbay
DIS Veteran
- Joined
- Sep 7, 2008
- Messages
- 2,116
It may not be an ideal situation, but can your aunt possibly get a roommate to live with? If she can manage her bills, with the help of another person covering half the household expenses, it will keep her credit from being too horribly damaged and prevent her, at her age, from being completely uprooted from her home. Maybe, with the passage of time, the home can continue to get back some more value. Then place it for sale later, when she can get more for it. Then, she won't be so far underwater.
That is definitely an option, as is renting the entire house out. We met with a realtor yesterday and she was optimistic that it may sell for what she owes. The problem is that she cannot really afford to make more than one or two monthly payments, so it will have to sell fast. I have an appt with the bank on Wed to talk about options.
Thanks... my opinion is that we need to explore every option so we'll definitely do this this week. I'll post an update. Thanks for the PM Danibelle!
Everyone's advice has been helpful in educating me on possibilities, I hate having no idea and just relying on an attorney. Now I can take several options to the attorney and have him advise us on what will work here in LA.
I'll post an update mid week after we finish talking with SS, attorney, and mortgage co. Thanks again!
Just wanted to thank you all again for the advice, it was very nice to have options to bring up and discuss to the attorney and mortgage co.
We did check into SS and she does not get survivor benefits. Furthermore, although she would qualify for $1000k a month once she retires, the state of LA will reduce those benefits to $600 because she will also get a very small pension from her work. Evidently only 7 states in the nation do that! Lucky us...
As for the mortgage, the realtor is very optimistic that it may sell for close to what she owes, so that would be wonderful... she may be able to make up a small difference. We'll get it on the market in a few weeks, going to do some touching up with paint and stuff. The attorney said that if it didn't sell in 3 months, we can ask for a "Dation En Paiement", which is what LA does instead of deeds in lieu, but basically the same thing. The mortgage company would not even entertain any alternative options right now, so we'll just pray it sells quickly so we don't have to deal with them... they were far from empathic!
Made some headway on his credit cards and will start on hers after we figure out what she'll owe on the mortgage. Good news is that she appears to really see how detrimental consumer debt can be, so hopefully she will never again use another credit card!!
Just wanted to thank you all again, you were most helpful!
We did check into SS and she does not get survivor benefits. Furthermore, although she would qualify for $1000k a month once she retires, the state of LA will reduce those benefits to $600 because she will also get a very small pension from her work. Evidently only 7 states in the nation do that! Lucky us...
As for the mortgage, the realtor is very optimistic that it may sell for close to what she owes, so that would be wonderful... she may be able to make up a small difference. We'll get it on the market in a few weeks, going to do some touching up with paint and stuff. The attorney said that if it didn't sell in 3 months, we can ask for a "Dation En Paiement", which is what LA does instead of deeds in lieu, but basically the same thing. The mortgage company would not even entertain any alternative options right now, so we'll just pray it sells quickly so we don't have to deal with them... they were far from empathic!
Made some headway on his credit cards and will start on hers after we figure out what she'll owe on the mortgage. Good news is that she appears to really see how detrimental consumer debt can be, so hopefully she will never again use another credit card!!
Just wanted to thank you all again, you were most helpful!
OP, I'm sure it probably sounds stupid since we're all total strangers, but keep us updated on the situation as things happen. I always worry about people who have posted here who are going through a difficult time. Your family is in my prayers!
Not stupid at all! My DH thinks I'm crazy for even posting such things but, even though I'm more of a lurker, you get to "know" people on here and I remember things about people and am always interested/worried too. She will be ok, one way or the other, even if she has to live with one of us. But she's young and vibrant and I know she wants to have a life of her own. She's been through so much (previously lost all 3 of her children, she went from a family of 5 to just herself) and she's such an awesome person. I hate that she's going through all of this, that's why I'm trying to help with this financial stuff so much. But thanks for the prayers, they are so important! I have faith that this will all work out ok.
dfchelbay
DIS Veteran
- Joined
- Sep 7, 2008
- Messages
- 2,116
I agree, not stupid at all. I know I learn a lot about many different things from these boards. Things I need to know for our family, things that may be on the horizon in our life, things I'd never thought of but are important, things that I wonder about, and many, many heads ups about so many different things. It is always good to get information and differing opinions on something...gives perspective. Plus, its nice to know that whatever you may be going through, good or bad, in your life, there are people that have been there before, are there as you are now...or will go through it in the future and can glean some knowledge and information here.
-
Eeyore in the Spotlight With New Loungefly Collection
-
Broadway Musical 'Frozen' New on Disney+ June 20th
-
Let's Make Disney's Lobster Nachos from Lamplight Lounge
-
Add This New Limited-Time Sweet Snack to Your Disney Plans
-
The New Disney x Corkcicle Release You Don't Want to Miss
-
Disney Debate: Is Disney Really A MORE Expensive Destination?
-
Could You Rock This New Disney Character Accessory?
Save Up to 30% on Rooms at Walt Disney World!
Save up to 30% on rooms at select Disney Resorts Collection hotels when you stay 5 consecutive nights or longer in late summer and early fall. Plus, enjoy other savings for shorter stays.This offer is valid for stays most nights from August 1 to October 11, 2025.
CLICK HERE
New Posts
