It's been a while since I've written anything...mainly because not much has happened. So far, this process has been fairly slow and uneventful. The nasty calls aren't coming, the house is barely showing, and life seems to be going on as always. One thing that has happened is that several people have begun to talk to me about their own housing collapse woes. I had no idea how many of my own local friends are also going through this. I have a friend who recently completed foreclosure, another who has until March before his house forecloses, and another who is in mediation with hopes of avoiding shortsale. My new neighbors bought their house as a shortsale, and another down the block sold in the same way. This is all within a 5 mile radius!
It's interesting what this does for a person mentally. When everyone is doing well, and you're the only one struggling, it's embarrassing, and one tends to feel like a loser. However, when lots of people are in the same boat, suddenly it doesn't seem so bad. My friend who's already experienced foreclosure is really happy with life right now. The friend with impending foreclosure feels like life is good. The friend in mediation, however, is stressed. But, hey, everyone's doin it! It can't be that bad! You'd think under such circumstances, something would be done to fix this mess within the system. But maybe there is nothing that can be done. Maybe this is just too big.
The Catch 22 is that the more people who lose their houses, but happily move on relatively unscathed, the less reluctant others may be to pursue this path. It's good to go through this with the examples of others who show that there is light at the end of the tunnel. But the more who do this, the worse off our national situation may become. Or maybe not. That's all too big for my poor little mind to grasp.
Until next time then, CHEERS to all my friends.
Tuesday, January 5, 2010
Tuesday, December 1, 2009
December 1, 2009: What Lies Ahead...
I signed all the paperwork today to get my house on the market. Apparently, the house must be listed for 90 days before the bank will begin to negotiate a short sale or deed in lieu of sale. (That means that the bank simply agrees to take back the house....wonder how often that happens.) In the meantime, I should be expecting a packet requesting that I compile all kinds of intriguing paperwork; taxes from the last two years, a letter explaining how I've arrived at this unhappy state in life, and who knows what else. When I do know, I'll surely write about it.
I've considered, and reconsidered, the affect this will have on my credit. As I've watched my credit card debt slowly creep higher and higher, I've realized that somehow, no matter what, my credit is going to be affected. It's really a matter of how mildly or how badly. First of all, certain bills are not going to get paid, because I can't give what I don't have. So, it's really up to me to decide which bills to give the cold shoulder to. If I don't pay my credit card bills, my credit is dinged. If I don't pay my mortgage, my credit is damaged. I've chosen to go with mortgage.
The impending damage to my credit will depend on how and when I lose my house. The best case scenario would be returning the house by deed in lieu of sale. If the bank doesn't care for that option, then I can hope the house sells quickly. A short shortsale is preferrable to a long shortsale, and the longer it takes, the more destructive it is to the ole credit. Of course, foreclosure is worst case scenario. In that case, my credit will be drawn and quartered in the most painful and humiliating way.
Like most others in my position, I'd rather not do any of the above. I wish I could sell my house for what I owe, but I owe $30,000 more than it's worth. I wish I could ride out the storm and continue paying my debt, but the money just isn't there anymore. I wish I wasn't contributing to the economic downfall of our country, but the economic downfall put me in this position in the first place.
So, here I am making the best decisions I can, and waiting to find out what more lies ahead.
I've considered, and reconsidered, the affect this will have on my credit. As I've watched my credit card debt slowly creep higher and higher, I've realized that somehow, no matter what, my credit is going to be affected. It's really a matter of how mildly or how badly. First of all, certain bills are not going to get paid, because I can't give what I don't have. So, it's really up to me to decide which bills to give the cold shoulder to. If I don't pay my credit card bills, my credit is dinged. If I don't pay my mortgage, my credit is damaged. I've chosen to go with mortgage.
The impending damage to my credit will depend on how and when I lose my house. The best case scenario would be returning the house by deed in lieu of sale. If the bank doesn't care for that option, then I can hope the house sells quickly. A short shortsale is preferrable to a long shortsale, and the longer it takes, the more destructive it is to the ole credit. Of course, foreclosure is worst case scenario. In that case, my credit will be drawn and quartered in the most painful and humiliating way.
Like most others in my position, I'd rather not do any of the above. I wish I could sell my house for what I owe, but I owe $30,000 more than it's worth. I wish I could ride out the storm and continue paying my debt, but the money just isn't there anymore. I wish I wasn't contributing to the economic downfall of our country, but the economic downfall put me in this position in the first place.
So, here I am making the best decisions I can, and waiting to find out what more lies ahead.
Thursday, November 26, 2009
November 21, 2009: Let the Games Begin
It's taken a while to get to this point; the point where I'm actually sitting down and discussing Short Sale with a real estate agent. I've spent the last year trying to figure out how to avoid this. All the while, I've been making up the difference between the money I earn and the money I owe by using credit cards. I've cried, gotten angry, tried to be creative, and finally given in. There is no other way.
And, WOW, do I feel better! Just making the decision has lifted the burden significantly. I'm going to have to let my house go....
How did I get into this situation to start with? My story is just another version of the same ole story so many are experiencing. I'm a single mom of three. My daughter's father lost his job, and his child support vanished like a New Orleans specter. Strike one. Then my car engine blew up. All my savings went into rebuilding the motor, (a cheaper option than buying a new car and acquiring car payments-my car is paid off.) Strike two. And lastly, my daughter's insurance dropped her. My personal income as a teacher is too high to qualify her for Medicaid, ( or Medicare, whichever it is), so now I must pay out of pocket. (Congress and Obama are moving way too slowly here!) Strike three, you're out! So, here I am, with a low interest 30 year fixed loan, and not enough money to pay it. Oh, yeah, and I also live in Nevada...#1 for foreclosure, credit card default, unemployment, prostitution, gambling...it's a regular Disneyland here!
Christy, my real estate agent, is wonderful, and an expert in Short Sales. Apparently, I have to NOT make a mortgage payment for 3 months. I can do that! I also have to write a letter authorizing her to communicate with my lender regarding my loan. I am not to contact them or discuss my loan with them at all. Done! So far, this short sale thing is not so painful...
Christy did warn me about the impending calls from the mean people who want to belittle me, harass me, grind me into dust, for not keeping up with my payments. Apparently, there are demons from hell who assume the form of human debt collectors, and they are going to try to eat my soul. However, I'm told they can only have as much power as I give them. Armor on, battle gear in hand, I think I'm ready...
Let the Games Begin!
And, WOW, do I feel better! Just making the decision has lifted the burden significantly. I'm going to have to let my house go....
How did I get into this situation to start with? My story is just another version of the same ole story so many are experiencing. I'm a single mom of three. My daughter's father lost his job, and his child support vanished like a New Orleans specter. Strike one. Then my car engine blew up. All my savings went into rebuilding the motor, (a cheaper option than buying a new car and acquiring car payments-my car is paid off.) Strike two. And lastly, my daughter's insurance dropped her. My personal income as a teacher is too high to qualify her for Medicaid, ( or Medicare, whichever it is), so now I must pay out of pocket. (Congress and Obama are moving way too slowly here!) Strike three, you're out! So, here I am, with a low interest 30 year fixed loan, and not enough money to pay it. Oh, yeah, and I also live in Nevada...#1 for foreclosure, credit card default, unemployment, prostitution, gambling...it's a regular Disneyland here!
Christy, my real estate agent, is wonderful, and an expert in Short Sales. Apparently, I have to NOT make a mortgage payment for 3 months. I can do that! I also have to write a letter authorizing her to communicate with my lender regarding my loan. I am not to contact them or discuss my loan with them at all. Done! So far, this short sale thing is not so painful...
Christy did warn me about the impending calls from the mean people who want to belittle me, harass me, grind me into dust, for not keeping up with my payments. Apparently, there are demons from hell who assume the form of human debt collectors, and they are going to try to eat my soul. However, I'm told they can only have as much power as I give them. Armor on, battle gear in hand, I think I'm ready...
Let the Games Begin!
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