# Got some questions on that first place.



## FarmboyBill (Aug 19, 2005)

Got a letter today that says im getting 17Gs before taxes May 6th

Its at 40810 N 4010Rd, Collinsville, Okla.n for those wanting to see it. They want $35G for it. It is/was supposed to sell by online auction this month.

Question is, Whats 80% of 35Gs?.

If MY local bank will loan on it. Would YOU tell them about the people liveing on it, since that ended the deal with the banker in the town next to it?

I would be buying the whole 10. I suppose I could get rent for the acreage they live on.
IF the down isnt too much, I could use some of the rest to fix up the house. Id want to make sure its got a good roof immeadiatly. Any other must dos also. BUT, not spend any more than 1/2 of whats left after paying the down.

I want to be able to buy a couple jerseys, and a doz, to start with bottle calves, not to mention a couple hundred chickens, a hundred at a time, chicks, to raise up and sell.


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## FarmboyBill (Aug 19, 2005)

I will take the letter that states im getting the money to the bank tomorrow to see what they can/will do.


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## frogmammy (Dec 8, 2004)

28 thousand


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## Terri in WV (May 10, 2002)

If it were me, as long as it's been for sale and with the complications of it, I'd really lowball and go in at 15-17 and see what they counter with. You might be able to get it at a really good price.

The realtor knows that it's going to be a hard sell and I'm sure they've already explained that to the note holders. Also, the listing said 7 or 8 acres(can't remember which, right off hand)not ten. Ask for a survey and don't forget title insurance. You might end up not having to mess with the original owners if you can get the 7-8 acres surveyed.


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## Shygal (May 26, 2003)

FarmboyBill said:


> If MY local bank will loan on it. Would YOU tell them about the people liveing on it, since that ended the deal with the banker in the town next to it?
> 
> .


Bill...........

Its not up to you to tell them or not, they certainly will find out when its surveyed. Why do you want to start off a deal being dishonest?

Why would you want to buy land that has people living on it? GOOD LUCK trying to get rent from them when they tell you they own those couple acres.

WHy not TALK to them and have the darned property split, and not worry about them at all?


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## FarmboyBill (Aug 19, 2005)

Ive thought of the SG.. I figured if they witheld the rent, then Id just tell them never to darkikn my side of the land again. With them knowing they didnt do right by me, and me telling them that. I shouldnt have to worry about them bothering me.

AS TO (Why do you want to start off a deal being dishonest.)

What makes you think id be dishonest?? Yes, IF they asked IF there was anybody else liveing there, and I said no, yes, that would be dishonest. IF they dont ask, which I cant see why they should, and I dont say anything,. wheres that being dishonest?? #1, Cause, I told the last banker about it and he nixed it then and there.
#2 Cause theres NOTHING that isnt in a flood zone for sale, nor has there been.
#3 Cause ive wanted this place for a year
#4 Cause I cant see, if I take your view, as in my first para, where it would be a big deal

The entity selling the property owns the whole 10 acres. Therefore, theyre selling the WHOLE 10 acres.


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## Terri in WV (May 10, 2002)

No, Bill, they are not selling the whole ten acres. Any place I've looked, it's listed as 8.23 acres.

http://www.homesteps.com/address/40810-N-4010-Rd-Collinsville-OK-74021/36882553_lid

http://www.trulia.com/property/3055663061-40810-N-4010-Rd-Collinsville-OK-74021

http://tulsa.pruhomequest.com/idx/mls-1310763-40810_n_4010_road_collinsville_ok_74021


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## Guest (Apr 24, 2013)

Deals such as that get very messy, very quickly..the deed has to be free and clear before a bank will loan hard old cash on a property..

It sounds, from what you've said in the past, that the owners defaulted on their mortgage, after they scooted to 2 acres of the property and built a house. THAT means that the bank, which OWNS ALL the property, has to legally get rid of them before they can sell the property to you or anyone else. Think about things such as homeowner's insurance, title insurance, lawsuits, lawyers fees. etc. etc. The bank doesn't play with that stuff, why would you want to???


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## Terri (May 10, 2002)

To legally evict somebody takes at least 2 months. Often longer. Just so you know. Good luck with whatever you decide!


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## FarmboyBill (Aug 19, 2005)

NO GO AGAIN several reasons

1 Bank dont loan in that area
2 Place has a house on it
3 House has to be insurable
4 Bank dont loan less than $50Gs.

Guess im back/down to the flood area prop. I like that better than all the people who left W of it. and around it.


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## Terri (May 10, 2002)

FarmboyBill said:


> NO GO AGAIN several reasons
> 
> 1 Bank dont loan in that area
> 2 Place has a house on it
> ...


So find another bank! They are not all the same, you know! 

Bill, just because a company makes house windows does not mean that they make car windows, or vice versa. Just because a particular bank makes mortgages on middle class houses does not mean they will give a mortgage on anything else! Apparently the bank you talked to does not make loans on that sort of land. Other banks make other kinds of loans.

So, call around. Call bank after bank after bank. There are a few banks out there than make loans on bare land, but you will not find them unless you look for them! 

I found a bank to give a mortgage and you can too. Does Great Southern Bank have an office in your area?


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## FarmboyBill (Aug 19, 2005)

Never heard of GSB.

My bank would have made a loan on BARE land. BUT not on land with a house on it that wasnt insurable.
Besides, That dosent do anything for the fact they only loan min 50G. Place was way below that. Maybe by 1/2.


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## coolrunnin (Aug 28, 2010)

I thought you needed to roll a building loan in with this place? if I remember the house is pretty rough needing a roof and the interior needed some upgrades.


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## Terri in WV (May 10, 2002)

There are a couple of other options that you could consider.

1) Get a personal loan and with that and what you're getting, you could buy the place and fix it up.

2) Buy the place outright with the money you're getting and then get a rehab loan to fix the house up.

The place is getting ready to go up for auction and if you were to go in and offer 12 to 15 they might just accept it to be done with it.


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## starjj (May 2, 2005)

All I can say is know your age, Know your limitations :umno:


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## FarmboyBill (Aug 19, 2005)

Terri. Those are good ideas. BUT, I doubt if I could get a personal loan anywhere other than the bank I currently do business. Ive never borrowed more the 2G from them, and that only twice. I doubt if I could get more than 5G from them.

Ill make a bid when I get the money IF it hasnt sold online by then. It was supposed to sell this month.
BY GOLLY, I guess I could make a bid NOW, assumeing I wouldnt have to have the money till the papers were signed, AND I hear that takes therebouts a month. I get the money the 6th, so that would give me near 2 weeks of haveing it in case things went faster.
What can you tell me about rehab loans.
Whats the minimum they make on a RHL?
How long do they make them for?
Do they make a % of the amount needed?
Anything else you can think of.

Dont know. IF I could buy it with my money, and couldnt get a rehab loan, might be rough. Kinda scary.

Thanks for the thoughts.

JJ since I dont know exactly what your meaning in my lemon nations, Ill digress.


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## Terri (May 10, 2002)

Bill: if you talk to another bank and they say no, you have lost nothing but a small amount of your time.


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## FarmboyBill (Aug 19, 2005)

It isnt the talking to another bank. Its the driveing all the way up there to do it. I cant afford it with my current FORD F 150. its a gas hog. Im waiting to get my check s to get a Ford Ranger engine put into my Isuzu Pup Pk. That should help out ALOT. ALSO, Ill be able to drive/range over the back roads looking for owner/sale places


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## FarmboyBill (Aug 19, 2005)

Ive always thought that a bank wouldnt make a rehab, OR personal loan if you didnt have a history with them long before they made such loans?


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## 2horses (Jul 19, 2004)

Why don't you try the online lenders, like Quicken Loans and Lending Tree? No gas money needed, just fill out an application. After that, it's all phone calls and faxes.


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## Terri (May 10, 2002)

CALL the bank! Don't burn the gas to be told that they do not make such loans!

Either they make loans on $35,000 houses or they do not. Most will not, a few will.

You can talk about whether or not you are eligible for a loan AFTER you find out if it is something that they do!


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## FarmboyBill (Aug 19, 2005)

Ive already been through Quicken/Lending Tree/Farm Services/Fha. No, No, No, No.


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## frogmammy (Dec 8, 2004)

Bill, you might want to check OK laws for adverse possession. If you buy the property and leave the people in the house alone, they COULD end up* owning* the property you pay for.

Mon


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## FarmboyBill (Aug 19, 2005)

Ill check on that tomorrow FM.


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## Ramblin Wreck (Jun 10, 2005)

2horses said:


> Why don't you try the online lenders, like Quicken Loans and Lending Tree? No gas money needed, just fill out an application. After that, it's all phone calls and faxes.


 ING Direct is another good online source.


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## Shygal (May 26, 2003)

How are you getting 17G before taxes?
Thats not going to leave you with as much as you think, after taxes. You better find out what that amount is, before you bid on anything.


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## FarmboyBill (Aug 19, 2005)

FM Adverse Possession refers to a situation where a land owner dosent know, OR care that another is useing some of his land for the users purpose. IF he does this for 10yrs, he is entitled to claim the land in an Adverse possession proceeding.
This would not apply to me, as I stated that I would make him pay the cost of insurance, as a form of rent for use of the land. As long as he acknowledeged that I owned the land by paying me money, to use his portion of it in rent, as far as hie is concerned, then I can prove that I was chargeing him rent for the use of the land that I owned.


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## starjj (May 2, 2005)

Shygal said:


> How are you getting 17G before taxes?
> Thats not going to leave you with as much as you think, after taxes. You better find out what that amount is, before you bid on anything.


Not even that Shy 

His SS could be affected by his earning 17K (before) taxes. This could count as income for the year and if you go over the SS limit they will reduce your SS earnings for that year . Everything looks good on paper BUT you have to have knowledge of how it really is going to affect you.


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## BetsyK in Mich (May 14, 2002)

Shy and star, I had similar concerns, didn't won't to be a downer, but getting a letter that says "you are receiving $XXX after you send us the taxes" is the way my dear friend got sucked in and ended up losing thousands of dollars. Bill, PLEASE BE CAREFUL!! IS THIS LEGIT? There are no freebies in this world.


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## starjj (May 2, 2005)

BetsyK in Mich said:


> Shy and star, I had similar concerns, didn't won't to be a downer, but getting a letter that says "you are receiving $XXX after you send us the taxes" is the way my dear friend got sucked in and ended up losing thousands of dollars. Bill, PLEASE BE CAREFUL!! IS THIS LEGIT? There are no freebies in this world.


I think from previous posts Bill has said this is money in a retirement fund from when he worked. He can take a lump sum payment from what I gathered. Needless to say it still could affect his SS payments. You have to look at the WHOLE picture in any case. The only good thing is there is no penalty because he is over 59 1/2.

Seems like a lot of people on here just encourage Bill to blast full steam ahead without thinking things through.


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## frogmammy (Dec 8, 2004)

If his income is under 24K he OUGHT to be all right. If not, then he could just income average over two years and it would work out, I think. 

Problem with letting the people stay there and pay insurance as "rent"....IRS can call that income from the property and charge taxes accordingly. They can do a couple other things too, if you're letting the people live there free, like call what you DIDN'T get as income. Take too long to explain that here!

Bill, do you have a *LETTER from the bank* actually saying that you are approved for such and such amount? Or do you have the word of the banker?

Mon


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## BetsyK in Mich (May 14, 2002)

I hope it is a payout from retirement acct. I'm a bit gun shy after my friend went through thousands of dollars. Never in a lifetime would I have thought she would fall for it.

I'm thinking FBB needs to talk to the Social Security advisor to be sure he doesn't get in a tight spot with his SS. Around here a person from SS comes to the Commission on Aging to help seniors with these questions.


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## FarmboyBill (Aug 19, 2005)

JJ I would think MOST here are trying to keep me in check.

I can make up to $14? before SS kicks in. After that, SS just takes out of the excess the same amount that they would take out IF I were still working, and made that extra 3G over 14. Its true, Im wondering now how much that would be. Thanks for the heads up. Ill call SS right now.


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## FarmboyBill (Aug 19, 2005)

I just got a call b ack from SS 9 40 Thurs. They said that SS does NOT effect a pension from a private concern such as a company. I explained that I was already returded, and drawing benifits, and friends had said I ought to check in and see how that pension, ion a lump sum might be effected by SS. She said that it wouldnt ber effected AT ALL by SS>


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## BetsyK in Mich (May 14, 2002)

Hurrah!!!!!


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## FarmboyBill (Aug 19, 2005)

Waited 1/2hr to get IRS. They said the tax on it would be $608


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## Terri (May 10, 2002)

That is well worth knowing!


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## FarmboyBill (Aug 19, 2005)

YUP. That leaves me with 17 to work with. I called my banker, the one I saw yesterday to see how much I could borrow on an open note, and then how much I could borrow on a collaterial note. I dont think id want to make up more than 20Gs for a bid, Makeing it a loan of 3Gs. Thats about as far as id care to stretch myself.
Dont think 20 would have a snowballs chance.


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## FarmboyBill (Aug 19, 2005)

Just got an idee.
Whaddia you think about asking the realitor that if after putting up 20Gs, IF I could make payments with the owner/holder for another 10G, 15G IF they thought they were doing me a favor by agreeing to do it??


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## frogmammy (Dec 8, 2004)

What is the bidding starting at?

Who is holding the auction?

And just a comment...if it is online, register WAY before the auction and watch an auction or two if you can...the bidding can go VERY fast!

Mon


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## FarmboyBill (Aug 19, 2005)

It is listed at Trulia for Col;linsville, as a regular RE sald. There wanting $35Gs. Dont know if the Online is real or not. Still trying to get the REA


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## Guest (Apr 25, 2013)

FarmboyBill said:


> Just got an idee.
> Whaddia you think about asking the realitor that if after putting up 20Gs, IF I could make payments with the owner/holder for another 10G, 15G IF they thought they were doing me a favor by agreeing to do it??


Are you referring to the folks in the back acreage? They don't own anything.. I cannot imagine any lender who'd risk a dollar on that property.. Whoever suggested that you offer $15k cash to the bank had a good idea.


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## FarmboyBill (Aug 19, 2005)

No Lesley. Your right. They dont own anything.' 

Ive been trying to contact 3 agents past 1 30 with both Zillow and Trulia. The listing on Zillow said that it was going up for auction. Didnt say online or not.


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## Terri in WV (May 10, 2002)

FarmboyBill said:


> Just got an idee.
> Whaddia you think about asking the realitor that if after putting up 20Gs, IF I could make payments with the owner/holder for another 10G, 15G IF they thought they were doing me a favor by agreeing to do it??


They are not going to do that, they want it off their books.

Now that you know what you're getting for sure, when you feel it's right and if you still want it, get a hold of the realtor and tell her you want to make an offer. Make it a low ball one(12-15) since it's distressed, been for sale for a long time and it last sold for 26. Don't tell her what you're willing to go up to, but start low. They will counter or accept.

I've watched a lot of the auctions and seen some go to auction 3 times before they sold at a really low price. I really believe that you could get it for around 15.(I have been know to be wrong on occasion though ).

If you could get it with a cash sale, you would then be debt free and fix it up as you can or get a small loan to do what needs done.

Do double check about the property size though. I know when it was first listed, it was 10, but now it says 8.23. That's telling me that the neighbor situation has already been taken care of.


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## FarmboyBill (Aug 19, 2005)

Ill bet they are going on what they had on the books a year or so ago as to acres. They would see no reason it should change. Im trying to get an insurance agent to tell me what ins would be on their house. So far, im waiting on
1 banker
1 ins agent
3 REAs to call me.


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## FarmboyBill (Aug 19, 2005)

Terri, youve said youve watched several RE auctions. Got some questions

Do they sell a place like they would sell a car or tractor. Sold in less than 5 minutes, OR

Do they take a bid a day, OR longer??


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## Terri in WV (May 10, 2002)

Here's the auction site they will put it on. 

http://www.auction.com/Oklahoma/All-auctions.html

Most likely they'll have it as a cash sale and will have something like this on the listing:

Property is being offered as is, where is
Buyer is responsible for all costs associated with purchase
Buyer will receive a Special Warranty Deed
Earnest Money Deposit to be 5% of Total Purchase Price or $2,500, whichever is greater
A Buyer's Premium equal to the greater of 5%of the Winning Bid Amount or $2,500 will be added to all Winning Bid Amounts to determine the Total Purchase Price

They will most likely put it up for around 3 days and you would have to register to bid and they will take whatever bids come in. Note though, that they will tack on a buyer's premium.

Your best bet though, is to go through the realtor with a cash offer.


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## Terri in WV (May 10, 2002)

Also with the cash offer, I'd put in the contract that I wanted a clear deed, survey and that they pay for title insurance.


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## FarmboyBill (Aug 19, 2005)

As to the deed, You might remember that the bank told the realitor, who told me, that id have to sign a paper excludeing them from ANY problems due to me OR the neighbors, BUT I would let my SIL make sure everything pertaining to the deed was on the up and up

Just got a call from one of the many REAs I called today. He didnt really know anything about the place, and he didnt know anything about online auctions.
He said that the starting bid was $35,5Gs. I said, what happenes if they dont get that bid. he said he thought it would go back to the bank. He said it also had a 5% buyers premium, whatever that is. He said There was something to do with a reserve, I asked what it was, and he said he didnt know, but that they would want it to go as high as possible.

Im waiting to get a call from the REA I delt with, with this place the last time. I guess Ive erased her weekly reports. I want that back, PLUS, I think she could give me a more indepth low down as she well knows the place im dealing with, and the conditions surrounding it.


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## FarmboyBill (Aug 19, 2005)

Just got a call from the agent. She said they had got an accepted offer TODAY, but she didnt know what it was.So I guess thats that, AGAIN lol.


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## Terri in WV (May 10, 2002)

If you pay cash, the bank won't have anything to do with it.

The starting bid will not be 35, from what I've seen, most likely it will start at $1,000.

The reserve is the lowest amount that they will take for it.


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## Terri in WV (May 10, 2002)

FarmboyBill said:


> Just got a call from the agent. She said they had got an accepted offer TODAY, but she didnt know what it was.So I guess thats that, AGAIN lol.


Well, dang it!

It'd still pay to keep an eye on it though and be ready to jump if the deal doesn't work out.


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## FarmboyBill (Aug 19, 2005)

Well, I guess I can start relooking at the flood zone 10, N of Oologha, or the 10, E of Oologah that I saw sell at the sheriffs office. The last is alot better than the first, in that its ready to move in, which the other one MIGHT be, BUT the second one
Isnt a singlewide trailer.
Hasnt got but 3 neighbors, where the first one has around 8
Isnt in a flood zone
has wonderful land
has 2 more outbuildings, and they factory made.

After it didnt sell cause the lawyer for the bank kept raising the bids, finally to 100Gs, she said it would go back to the bank, who would hold it awhile, then put it back on the mkt, Ive lost it. It hasnt appeared on any lists. ill drive by it when I get my check to see if theyve got a sign up. IF it looks like its sold, or theres no sign up, ill take a long look at the flood plain.


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## FarmboyBill (Aug 19, 2005)

yup. It wouldnt be the first time the deal fell through. BUT with my luck with women LOL lol, Ital be the last.


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## Terri (May 10, 2002)

FarmboyBill said:


> Just got a call from the agent. She said they had got an accepted offer TODAY, but she didnt know what it was.So I guess thats that, AGAIN lol.


DARN!

In the meantime, please continue to call around to see what banks will do what. If you get everything lined up, you might be the next quick buyer.


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## FarmboyBill (Aug 19, 2005)

I feel like I move lak MO lassasz


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## Shygal (May 26, 2003)

FarmboyBill said:


> I just got a call b ack from SS 9 40 Thurs. They said that SS does NOT effect a pension from a private concern such as a company. I explained that I was already returded, and drawing benifits, and friends had said I ought to check in and see how that pension, ion a lump sum might be effected by SS. She said that it wouldnt ber effected AT ALL by SS>



Bill..........the way you wrote it here, you asked the wrong question. Its not that the lump sum would be affected by SS, but the SS that would be affected by the lump sum.

You may end up not getting any SS the rest of the year, THAT is what you have to find out, not whether your lump sum will be different.


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## FarmboyBill (Aug 19, 2005)

U got me fused, AS USUAL


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