Dear Liz: My mother passed away unexpectedly in late 2008. She had a mortgage, and the house was under her name only. She didn't leave a will. My family is still paying the loan, and the company does not know my mother passed away. We don't have a lot of money and we need advice on how to get the house under my sister's name (she has good credit). We need to get the loan modified since the monthly payment is almost $1,000 and only about $70 goes toward the principal.
Answer: Your mother may not have created a will, but your state has laws that determine what was supposed to happen after her death. Lying to the mortgage lender is not one of the legal options.
Federal law allows mortgages to be transferred to heirs. (Without a will, those heirs usually would include a surviving spouse and the dead person's children.) Transfers because of death typically are exempt from the due-on-sale or acceleration clauses that otherwise would allow the lender to demand full payment.
To get the mortgage transferred, however, you usually need to have started the probate process.
At this point, you should consult a mortgage broker about the likelihood of getting a refinance or a loan modification. If the home is deeply underwater, it may not be possible or worth the effort. If foreclosure is likely, it would be better not to transfer the mortgage as the heirs' credit would suffer significant damage.
If your plan is feasible, however, then you'll need to consult a probate attorney. You may not have a lot of money, but you need to pool what you have to hire someone who can dig you out of this mess.
Cheapest way to convert currency abroad
Dear Liz: After reading your column about the best ways to pay while traveling in Europe, I want to share my experience. I was unhappy with the foreign transaction fee charged on my
Answer: Credit card expert Odysseas Papadimitriou suspects you were comparing purchases made on different days, or even on different trips. Although one of your cards charges a foreign transaction fee and the other doesn't, both cards get the most favorable rate from their card network's exchange rate. Visa cards would get the Visa card network exchange rate, while MasterCard would get the MasterCard network exchange rate. If both your cards were Visas, for example, they would get the same exchange rate, but the one that charged the foreign transaction fee would increase your cost by that amount (typically 1% to 3%).
There may be "tiny" differences between those Visa and MasterCard exchange rates on a given day, but one wouldn't be "much less favorable" than the other, Papadimitriou said.
And the exchange rates are certainly better than what you'd get by exchanging dollars for euros at a bank in advance of your trip, or by using currency exchange services once you got there.
So the fact remains that the cheapest way to convert currency is to do so automatically by making purchases with a credit or debit card that doesn't charge foreign transaction fees. Here's another suggestion for reducing fees abroad:
Dear Liz: One option for folks traveling to Europe to save money on ATM withdrawals is to check with their bank and find out if there is a checking or savings account that carries the benefit of the bank canceling foreign ATM fees as well as their own fees. Before I traveled to Scotland to visit my daughter, I switched accounts at my bank to one where there are no fees for using other banks' ATMs. Worked brilliantly!
Answer: If your own bank doesn't offer this option, it may be worth setting up a checking account with a bank that does. As mentioned in the previous column,