An older family member of mine has a large amount of credit card debt and their only major asset is the house that they currently live in. From what I've read it seems that creditors will liquidate all of their assets including the house in order to try and cover the debt upon their death.
One of their children wants to purchase the house or assume the mortgage from them now and become the new owner. if the house is sold/transferred in this manner and no longer belongs to my older family member with the large debt, will creditors try to come after her child upon her death?
The house is located in Florida.
First, they cannot assume the mortgage, they will have to get their own mortgage. if the house is sold at market, and is a true sale (ie deed is in the relative's name) then this can work. however, if the current owner dies very shortly after the sale, the credit card company might try to claim that the sale was not true.
But overall, there might not be much point in doing this. if the sale price of the house is less than the mortgage balance, the bank will probably not allow the sale (this is a short sale). if there is no mortgage, or if it is smaller than the value of the house, the current owner will have the excess cash anyway and unless they are planning to spend it all while keeping the credit card debt, this will go to the credit card company on their death to cover the debts.
First of all, in Florida, you can file for homestead exemption if it is the primary residence, which means that no one or anybody can take the house for payment of debts even with a judgment.
Creditors can not go after the children for credit card debts. if there is no surviving spouse, then an executor would be appointed to handle the estate. The executor would have to sell any assets (excluding the house) to pay any outstanding debts. The debts are to be paid according to their priority such as IRS, State Taxes, Liens, Judgments.
Credit cards are the last in line and most will simply charge off the debts.
Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice
Can credit card debt transfer to your children after your death?
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Contact the Financial Ombudsman Service and tell them, Make sure you have all the dates of when you made your purchases and when you made the payments, they will help you and may send a formal complaint to the credit card company. their number is 0845 0801800
They are trying it on as alot of people just pay up as they can't be bothered to do anything about it.
Something is wrong with the card. YOu need to contact the credit card company and ask them why they are denying your charges.
I wish my credit card company would increase my limit at all, they keep refusing...even with good credit and < 1% debt:income ratio. To answer your question though, you can call them and ask them not to increase it when they review it.
ha! thanks B Binks, that is true indeed. i was working at Mod Lang Records and playing Radiohead as an import on my college radio show KCRH in Hayward at the time.... I used to bring stacks of new imports to Live 105 back in the day and CREEP was one of 'em. cheers! -Aaron
this sounds like more of a issue with your credit card company then with gamestop i would try talking to them first if they say it's a problem of gamestops end call gamestop's corporate number and file a complaint it's been my experience that corporate is very helpful
If its not paid on the due date is it on time? No, it isn't so it is late.
BESIDES the fact the "grace period" refers to the amount of time you have before the credit card company starts charging interest on your purchase. (which btw there is no grace period if you are carrying a balance)
What allowed you to pay off the house in 4 years wasn’t a HELOC. It was dumping every last penny of your money into paying off the house. If you used a HELOC but only ended up putting $100 toward the house every month (meaning you “deposited” $2000 and “withdrew”/wrote checks for $1900″ then you wouldn’t make that big of a dent in the mortgage balance.
If the businesses choose to employ the services of a credit card company, thus allowing them the convenience of accepting credit cards, they must pay for that convenience and agree to abide by the rules and regulations set forth by that company. In all likelihood, they probably make more sales due to accepting CC's. But if not, if their increase in profit from accepting CC's is less than their expenditures in CC fees, they should not offer to accept CC's.
Lisa, with a mortgage balance higher than the value of the home, it will extremely difficult, if not impossible, to refinance your home. To get the best rates, you need a loan to value ratio of 75%. And loan equal to 80% of the home’s value is about as high as lenders will go. And to answer your second question, I would look into a loan modification now. Your lender should have a department established to handle loan modification requests.
I was loving the SALT music, like a mixtape that never ended. It was also forcing live 105 to up their game a little. Kinda sad to see the format change again, it was (in my mind) the perfect radio station for a few weeks.
and Playing devil’s advocate here, but if inflation kicks in wouldn’t having a mortgage balance be beneficial? Let’s say your rate is 5% on the house, but inflation kicks up and you could earn 6% on your savings. What would you do then?
Credit Card Debt After Death In Pennsylvania: Credit Card Debt After Death In Pennsylvania ...pindropmusic.co.uk...
You might want to check first with your loan servicer as to whether you can actually pay it off with a credit card or not. If it's a federally backed loan, you can't use a credit card unless your account is in default. Your monthly payments generally should be a direct payment by check or direct deposit. Unless you're talking about using a cash advance/convenience check from your credit card company, in which they usually rape you with percentage fees on top of your normal month to month APR%, making any money you'll save in interest nonexistent.
I think Megan’s best bet is to hold off on having any more kids (beyond the one that is apparently already on the way), tighten up the family budget, and stay in her current house until the falling mortgage balance (via payments) and rising home value (via market recovery) intersect.
I’d suggest paying off the mortgage in full and then taking out a HELOC. Her mortgage balance goes to zero, she’s no longer arbing herself for 3.625%, and yet she has access to cash again if she ever wants it. She can effectively remortgage her house for any reason with no transactions cost. Banks love large balance low LTV HELOCs. My local credit union offers a Prime – 1% 10 year draw HELOC which has no annual fee if you are a member. They also offer a 4.99% 3 year fixed rate which switches to Prime – .5%.
I was in the same situation about a month ago and decided to pay off my mortgage balance in full. My interest rate was 3%, but it was an adjustable rate. I made the decision because I had the money sitting in a savings account earning less than 1% for two years, evidence that I wasn’t comfortable risking this money in the market. I already have a solid emergency fund and plenty of money in the market, so paying off the mortgage was the right decision for me. I feel great! No more debt, more cash flow, and lower expenses.
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