Can you imagine what would happen to the Real Estate market if Social Security is cut?

[Paper Roses]

All of us who now struggle living on SS and own our houses will put those houses on the market.
As an example, I own my house. I get 1016.00 per month as a SS check. I must save 1/3 of my check toward Real estate taxes, Heating this old place is a horror, so is my electric bill. Upkeep in awful. I am a widow. Years ago, when my husband was alive, we kept things up. Not only am I now alone but I am not physically able to climb ladders, paint ceilings, refinish floors, scrape and paint the exterior or any of the rest of the upkeep necessary. Cleaning is one thing, maintenance is another.
I would bet my last dollar that the real estate market would be flooded with properties like mine,. We old timers cannot keep up. A cut would drive the real estate market down. We would sell rather than lose our houses because we can't pay the RE taxes, let alone the other upkeep bills.
I have no idea what I will do if there is a cut. Can hardly keep it together now.

I am so discouraged with the state of affairs now, I'd move if I could.
Cannot do so because I have no money or income to buy something smaller.
I love my house, been here 45 years.
What a way to end things.

A good cry every so often helps but not much.

[livetohike]

1. Sending you a hug

and let's see what happens before we all worry ourselves sick. I'm not collecting Soc Sec yet, but will be in a couple of years.

[Bay Boy]

2. Why don't you sell the house?

I'm sure you're attached to the place and all but why not sell it and buy maybe a smaller place that is easier to heat and maintain?

[aandegoons]

3. Why should we not be allowed those things we worked for for forty plus years?

Whats next.... You don't need two kidneys?

[Bay Boy]

8. Not my point at all...

...many people downsize as they get older, I'll be doing it myself soon. I have a 4 bedroom house that we raised our kids in but it's much bigger than we need now.

[aandegoons]

9. But you are not everyone.

Some people like their kids, grand kids, neighbors, bridge club, great grand kids, dog, and fish.

[Bay Boy]

13. WTF?

Some people like their kids, etc? Yeah, me too. But once your house is bigger than you need and the maintenance to keep it gets beyond your means, it's time to sell.

[aandegoons]

14. Sure ok march down run backwards.

Maybe my mouse is too big too. Gotta do what bay boy says he is the decider of what is too much for us old folks.

[Bay Boy]

16. Double WTF?

"Sure ok march down run backwards" What does that even mean?

"Maybe my mouse is too big to" Mouse? I'm assuming you meant mouth.

"Gotta do what bay boy says he is the decider of what is too much for us old folks"

I'm not telling anyone what to do, just making a suggestion. One that many people have followed for generations.
When I was single my first house was a small two bedroom, I got married and moved up to a three bedroom. We filled that up and got a 3,000 sq ft four bedroom. Now we are empty nesters and it's time to downsize.

Same thing happens with cars, started with a little sporty car, got an Aero Star van when the kids were young. I drive a Prius now.

It's all a natural progression.

[truegrit44]

28. I don't think BB is saying she has to do this he is just

giving her a good suggestion. Which is by the way exactly was I was doing today..........looking for a less expensive house that I could buy for less than what mine is worth so I have some back up money for paying for upkeep or whatever arises. My husband an I are also on SS and very strict budget. I have read and even heard on tv from the financial experts that this is very smart move to make.
I don't see this as a republican idea or a stupid mean idea. We all have to live within our means and those of us who have not been able to save tons of money over the years or those that lost a lot of savings during the repression it makes total sense to me and personally can't wait to do this exact same thing.
Also, as long as paper flower doesn't owe a mortgage and buys something else I don't see where it would affect the market. One would balance out the other on the real estate market for sales.

[aandegoons]

37. Selling downsizing to seniors and cutting their social security is a loss.

It will not work. We will be murdered in any future election if we try to sell that.

A lot of us already understand what has to happen or else we certainly would not have made it this far already. I bet almost none of the seniors have to be told how to make it at the point of social security. They have 62.5 years plus behind them.

Watch the cat food for grandma commercials in the midterms. Any plan from the repukes will look good by comparison and the repukes will sell us even further down the road.

Once we make this step and set sell your house, or eat less, or put on another sweater as our offer than we might as well just give up. Anyone over the age of 40 is not going to vote for us.

[snooper2]

32. are you being snarky or just goofy>

Because after this sub thread I need to smoke a bowl LOL

[Bake]

43. Holy shit, it was just a suggestion!

And a reasonable one at that! If the OP does not choose to do that, fine. Lotta people DO downsize once the kids are grown. My dad did. Got rid of a house with an acre of yard that he couldn't mow anymore (even with a lawn tractor) and bought a condo. Stayed there until he passed away two weeks ago.

Geez.

Bake

[Kingofalldems]

15. Sounds like a republican position to me

[Bay Boy]

17. WHy?

Explain please.

[Kingofalldems]

18. Telling people to accept an unjustified pay cut and downsize.

That's what they want for America.

[Bay Boy]

19. Excuse me? Where did I say anything about a cut in SS being a good thing or acceptable?

I was addressing this: " Heating this old place is a horror, so is my electric bill. Upkeep is awful. I am a widow. Years ago, when my husband was alive, we kept things up. Not only am I now alone but I am not physically able to climb ladders, paint ceilings, refinish floors, scrape and paint the exterior or any of the rest of the upkeep necessary. Cleaning is one thing, maintenance is another"

Even with no cut in SS the OP is in an untenable situation. A house that's too expensive for her to afford and maintain is screaming at her "It's time to downsize!".

[JDPriestly]

31. A smaller place will not necessarily be any cheaper or any easier to

heat or keep up. And then there are the costs of moving.

Cutting Social Security even just a little will mean misery for many, many seniors who are barely making it.

This is a cruel blow to seniors -- and completely unnecessary.

Worst of all, it is going to cause a lot of seniors to worry, worry, worry, and suffer psychologically. Seniors suffer enough from depression as it is.

Obama is wrong and out of place on this. Horrible.

[FogerRox]

45. In this market?

And lets says they do sell, at a 20% or 30% discount, what are the tax implications?

[raging moderate]

4. Paper Roses has written a very perceptive post.

What WILL happen if ALL of these seniors who depend on Social Security get their pittances cut? The sudden need for millions of house sales is likely to destabilize the real estate market. Again. Then the right-wingnuts can pretend that it is all the fault of those bleeding heart liberals for allowing "unworthy" poor people to take out mortgages. Again. Then the economy can crash. Again. Then the right-wing billionaires can cash in on other people's agony. Again. Then they can jeer at the rest of us. Again.

[CountAllVotes]

7. BINGO!!

and WELCOME TO THE DEMOCRATIC UNDERGROUND!!!

[dkf]

10. Hopefully most seniors have paid off their houses.

As long as they didn't get into the second mortgage and refinancing trap, they should be okay.

[HiPointDem]

25. not when they start taking cuts to SS every year.

[dkf]

26. It's not a cut.

Cuts are what happens when the social security surplus is gone. 25% is more than just an inflation adjustment.

And solve health care and all of us are sitting pretty.

Health costs are the bane of our entire economy.

[HiPointDem]

44. of course it is.

[FogerRox]

46. ChaINED cpi ISNT A CUT? Really?

[RKP5637]

27. The taxes in NJ, for example, on my parents old

home are nearly $8k/yr for a $200k house. That, for example, is not sustainable for one person on SS even though the house is fully paid for.

[JDPriestly]

33. How flippant and hard-nosed.

The OP explains that she paid off her house but with a smaller Social Security check will not be able to afford the taxes and upkeep.

Well. There is always one truly cruel person in a group as large as the DU community. One without any feelings. One who is smug about his relatively comfortable position, one who has no understanding, no compassion, no sense of human community.

And that one will have his day -- the day when he fails, when he loses and when he suffers pain.

I've seen a lot of life. No one gets to live without suffering. We just suffer in different ways.

Old people should be able to stay in the homes in which they raised their families and house not just their possessions but their memories. A person who does not understand that naturally is doomed to understand one day.

[Lugnut]

36. Wrong!

Real estate taxes need to be paid, utility bills keep going up along with fuel for the heating/AC. That's just for the basics. Even a small reduction in benefits can be devastating for most senior home owners.

[Kalidurga]

5. I don't know if this would be a good option for you or not

But, is there anyway you could rent out a room? Perhaps to a young person that wouldn't mind doing some of the maintenance for a reduction in rent, but still pays enough rent to make it worth it. I don't think asking say 450 a month would be unreasonable and you could reduce that to 350-400 if there are maintenance issues your roommate takes care of. Or maybe you could keep the rent at the higher level but exchange services so to speak, maybe you do the cooking and light cleaning and the roommate changes light bulbs that are situated on the ceiling.

[n2doc]

6. the 1% will gladly take your house, at a steep discount

and re-rent it to you or someone else. They've been doing that since the last crash.

[trof]

11. Bingo! My home equity has always been my ace-in-the-hole.

$120,000 mortgage, quick sale at around $500,000.
We would be literally 'set for life.'
We're waterfront.
Could move 2 blocks inland, pay cash for house, lose $650/mo. mortgage payment, and have cash left over.
That's what I'd do.

[CountAllVotes]

12. Reverse mortage?

Have you checked into this possibility?

I found a link that addresses this possibility:

9 Things You Should Know About Reverse Mortgages

http://www.wiserwomen.org/index.php?id=149&page=9_Things_You_Should_Know_about_Reverse_Mortgages

If you don't have any survivors, I'd think more than twice about this idea.

Best of luck.

P.S. My sister-in-law (who is now in a nursing home) deeply regrets not doing this. *sigh* w/a HINT and big one btw.

[Brigid]

20. Beware!

Don't let the sappy ads fool you. Check out the AARP website: http://www.aarp.org

[CountAllVotes]

21. It can work well in some situations

Just something worth considering IMO. Definitely in some cases/situations.

[Brigid]

22. Yes, it is true.

A reverse mortgage can work well in some situations. But no one should rely on sappy ads to make such a decision. Sound, objective financial advice is needed.

[CountAllVotes]

24. the link I posted above

It tells you how to approach this issue and who to contact. It recommends HUD, not some greedy real-estate agent, etc.

i.e. ....

>> 8. Do NOT pay an estate-planning service to find a reverse mortgage. HUD-approved counseling agencies can provide this information at no or minimal cost. Call the toll-free number 1-800-569-4287 to locate a HUD-approved agency near you.

Lots of good advice on that link.

[JDPriestly]

34. Don't ever suggest a reverse mortgage.

A lot of seniors lost the roofs over their heads in the recent mortgage crisis thanks to reverse mortgages.

It may work sometimes, but it is a huge gamble.

[CountAllVotes]

39. I stated that it COULD be an option in SOME situations for SOME people

and yes, I would do it in a second rather than give up my small little house. I could give a crap about heirs that I never hear from except when looking for a few bucks for themselves or their kid.

As I mentioned, had my sister-in-law done this, she'd still be living in that house she owned for 50+ years not a damned nursing home! She gave her "beloved" son power-of-attorney and he sold the house out from under her and dumped her into a nursing home hoping she'd die soon and he'd cash in on the "old bitch" as he calls her.

Well, she did not die "real soon" and she is stuck in this damned nursing home pushing 85 years of age. She could have stayed in that house and hired someone to help her as it is a small house that had been recently remodeled by my brother-in-law, a retired contractor that lives not too far away.

Being she won't be around forever, it would have been the perfect option IN HER CASE and it is too bad that she did not listen to her relatives that suggested that she do this. However, she wanted her "dear son" to have that house when she passed, or so she thought at one time.

However, now she isn't sure about that and regrets that she gave the SOB power-of-attorney and she is angry and stuck in a damned hell hole for the rest of her life now. When the money runs out, she'll end up in a Medicaid run facility I suspect and may god help her as she receives her late husband's pension benefits and they are good benefits as he was a retired member of the SFPD. She herself worked for years too and has her own pension, so she is not exactly broke but the nursing home is $9,000.00 a month last I heard.

No one in her family wants her to know about what her son has done to her, so she'll find out that her house is gone and she has no money left as her awhole of a son is standing there waiting for her to die while they transfer her to yet another even worse of a hell hole nursing home/dump.

Sad situation indeed and in her case, the reverse mortgage would have bought her some more time to live in that house she lived in for over 50 years with some help and as for her son well he gets a giant FU from the entire family, myself included. Maybe nothing will be left for her solitary heir but who gives a damn? Her family is trying to file criminal charges against him for elder abuse which is not easy btw!!! Other legal actions against said son are still being considered by her family which contains 7 living siblings and many nieces, nephews, etc.

[Brigid]

23. It does sound like that house is becoming just too much for you.

Is there maybe a senior citizens center or something like that in your area? Maybe they can refer you to someplace where you can get advice about your situation and whether or not selling the house is the right thing to do.

[treestar]

29. I've never been able to buy a house in the first place

So it's tough to empathize.

[JDPriestly]

35. A chained CPI will hit renters the worst. Unless they already

are receiving help with their rent and all the other things that people need like receiving subsidized food.

[JDPriestly]

30. You are not alone.

It will be hardest on the widows -- on those who are now living alone in houses they bought back when their spouses were alive. Their Social Security income is cut at least in half when the spouse dies, and now, the remaining income will be cut if Obama has his way.

Property taxes are high even in California, too high to pay out of one Social Seucirty check.

[CountAllVotes]

40. My sister-in-law 's property taxes were ...

A whopping $600.00 a year.

She could have stayed there too and yes, the house is in Calif. in the City of San Francisco!

The two pensions she collects is not enough for the care she needs so ... greedy son + power-of-attorney = nursing home in her case and house = a thing of the distant past.

[Heywood J]

41. What kind of horrible paperwork

and how many hours of standing in line did you have to threaten to get that? It must have been grandfathered from 1960 at that rate?

[CountAllVotes]

42. She lived there since the 1950s

And she had planned to stay there. The taxes were low because of Prop. 13. They slowly went up over time and were about $600.00 a year when the axe fell upon her.

Now the house has been sold and the taxes are about $9,200.00 a year ....

[ananda]

38. I rent. Here's why.

I've discovered that I do much better financially by
renting in a place where all maintenance and pest
control is provided. And it's just an easier way to
live, a double win!