4 ms·

This is a very deceptive headline. The most common kind of debt is mortgage debt, which is by definition secured. At any moment I have lots of bills I am supp

This is a very deceptive headline. The most common kind of debt is mortgage debt, which is by definition secured. At any moment I have lots of bills I am supposed to pay and lots of assets or incomes to pay them with. Debts I owe that are secured or I have resources to cover are not a problem for anyone.

k__ 10y ago
And with secured you mean, they gonna take away your home if you can't pay?
- sokoloff 10y ago
  Eventually, yes. That's what secured means.
- John23832 10y ago
  Considering the fact that you have died, that's a nonissue. If you want to leave something for your offspring, make it a priority to pay your house off first.
  - joezydeco 10y ago
    Your offspring still would get any equity left after paying the remainder of the note. It's not like they confiscate the whole house because you still owe $100,000 on a $250,000 home. But the survivors do have to keep the home out of foreclosure (as in, keeping the payments current)
    - toomuchtodo 10y ago
      I specifically invest in homes that have been foreclosed on when someone has passed away, because I can't stomach the thought of purchasing someone's home that they were evicted from because they couldn't afford it (ie vultures on the court house steps). I can't tell you how often someone's heirs either didn't know or didn't care enough to take care of what was required to keep the mortgage in good standing to sell the property and get the equity out.
      - drewrv 10y ago
        Do you think maybe grieving families have different priorities than selling off assets right away? Or maybe they're trying to sort out among themselves who is in charge of making payments? Or maybe they can't afford payments because the breadwinner passed away? I'm not trying to judge what you do or what situations you're a part of, but it doesn't sound much different than the "vultures on the court house steps" to me.
        toomuchtodo 10y ago
        Foreclosure takes 1+ year in my state. I consider myself an acquirer of abandoned property at that point, and again, I don't pursue acquiring the property if there is a family attempting to live there (as you say, after he breadwinner has passed).
        drewrv 10y ago
        Makes sense.
  - k__ 10y ago
    Fair enough, in that case it makes sense. But doesn't non-secured dept result in the same thing? I mean if I can't pay off the credit for a degree or car or boat, won't they come for my house too?
    - John23832 10y ago
      They could. Generally when you die it's (your assets) - (your debts)
GauntletWizard 10y ago
Absolutely. The end of the first paragraph: "Without home loans, the average balance was $12,875" This is still debt, but is vastly different. I have a revolving balance of a couple thousand a month on my credit cards, which is probably also included here. It's also clearly not counting any assets, so this is the equivalent of your final bills - The amount taken from your estate when you die. It's probably a real chunk from most estates, and probably includes the reposession of cars and major property, but it's not like every family heirloom is going to be taken if you can't pay up $50+k after your grandma's funeral.

k__ 10y ago

And with secured you mean, they gonna take away your home if you can't pay?

sokoloff 10y ago
Eventually, yes. That's what secured means.
John23832 10y ago
Considering the fact that you have died, that's a nonissue. If you want to leave something for your offspring, make it a priority to pay your house off first.
- joezydeco 10y ago
  Your offspring still would get any equity left after paying the remainder of the note. It's not like they confiscate the whole house because you still owe $100,000 on a $250,000 home. But the survivors do have to keep the home out of foreclosure (as in, keeping the payments current)
  - toomuchtodo 10y ago
    I specifically invest in homes that have been foreclosed on when someone has passed away, because I can't stomach the thought of purchasing someone's home that they were evicted from because they couldn't afford it (ie vultures on the court house steps). I can't tell you how often someone's heirs either didn't know or didn't care enough to take care of what was required to keep the mortgage in good standing to sell the property and get the equity out.
    - drewrv 10y ago
      Do you think maybe grieving families have different priorities than selling off assets right away? Or maybe they're trying to sort out among themselves who is in charge of making payments? Or maybe they can't afford payments because the breadwinner passed away? I'm not trying to judge what you do or what situations you're a part of, but it doesn't sound much different than the "vultures on the court house steps" to me.
      - toomuchtodo 10y ago
        Foreclosure takes 1+ year in my state. I consider myself an acquirer of abandoned property at that point, and again, I don't pursue acquiring the property if there is a family attempting to live there (as you say, after he breadwinner has passed).
        drewrv 10y ago
        Makes sense.
- k__ 10y ago
  Fair enough, in that case it makes sense. But doesn't non-secured dept result in the same thing? I mean if I can't pay off the credit for a degree or car or boat, won't they come for my house too?
  - John23832 10y ago
    They could. Generally when you die it's (your assets) - (your debts)

GauntletWizard 10y ago

Absolutely. The end of the first paragraph: "Without home loans, the average balance was $12,875" This is still debt, but is vastly different. I have a revolving balance of a couple thousand a month on my credit cards, which is probably also included here. It's also clearly not counting any assets, so this is the equivalent of your final bills - The amount taken from your estate when you die. It's probably a real chunk from most estates, and probably includes the reposession of cars and major property, but it's not like every family heirloom is going to be taken if you can't pay up $50+k after your grandma's funeral.