filling I 134

[deomaya 0]

my fiance is filling up his I 134... he's earning annually above poverty level, he's thinking if he needs to put his co ownership of real state with mortgage and put his life insurance too... what do you think guys? need help n advice....

[Ning 619]

my fiance is filling up his I 134... he's earning annually above poverty level, he's thinking if he needs to put his co ownership of real state with mortgage and put his life insurance too... what do you think guys? need help n advice....

Dont over think this. If hes above the P level thats all thats required. Additionaly the other assets he may have would need to be liquid if they were to be considered.

[JimVaPhuong 4,863]

Co-ownership of real estate could be listed, but they would only consider it if they believe he can cash out his share of the equity in 12 months or less. This can be tricky, because the only ways to do this are to sell his equity share to the other co-owner, sell the property and split the equity with the other co-owner, or find a 3rd party to buy his share of the property. All of these options require the cooperation of the other co-owner. If the other co-owner won't cooperate, he can't cash out. Siblings who inherit property from their parents through a Will often find themselves in this predicament - one or more siblings wants to sell, and one or more do not, and the ones who don't want to sell aren't willing to buy out the ones who do. This is often because the ones who don't want to sell intend to "squat", meaning they intend to occupy the home without having to pay anybody.

Also, more than half of the mortgaged properties in the US are now "under water", which means the net payoff on the mortgage is more than the property could be sold for. If his mortgage is under water than the property is not an asset - it's a liability, and it would be best not to mention it on the I-134.

EDIT: Correction. That's 20% of mortgaged properties are underwater. My memory sucks.

Life insurance can be listed if it's Whole or Permanent or some other type of insurance that has a cash payout value.

Edited June 7, 2009 by JimVaPhuong