“Home Ownership” Archive

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How long can we hang on…

My husband and I sat down with sharpened pencils and sketched out a plan of action. We would have sketched this out earlier but we just received the unemployment numbers on Friday.

The big question…

How long can we hold on without my husband’s job?

Our initial numbers (without unemployment benefits) put us at 8 weeks. Our reductions to debt paired with our cash in savings and unemployment benefits put us at…

9 months.

Had this happened before we had taken control… had this happened before we made the decision to live below our means and reduce debt… we would have made it through a month, maybe two tops.

But now, we’re looking at 9 safe months. 9 months to find a job before things get hairy. Sure we won’t make progress other than minimums and we certainly won’t eat anything other than Ramen noodles but, we can hold on.

I have four words to say –

Thank. You. Dave. Ramsey.

Posted by Beks on October 25, 2009 at 5:00 AM in Debt Updates, General Debt, General Personal Finance, Home Ownership, Living Frugal, job loss | 30 Comments »
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Making Home Affordable Tips…

I learned a lot about the Making Home Affordable/Home Affordable Modification Program (HAMP) in my 2 hour call with Bank of America.

1 – If you are hoping for a huge change… this is not the answer. Not all changes are permanent and/or large. Some adjustments may last as little as 3 months.

2 – Loan modifications are not quick. If you can’t wait the standard 9 weeks for the review of your file and another 5-9 weeks for paperwork processing, you don’t have enough time and you may want to move forward with other options like a short sale or foreclosure.

3 – Give an accurate listing of all your expenses. Don’t exaggerate but don’t minimize either. Have a good understanding of exactly how much you are paying. Keep this information available for when you call the bank.

4 – You will be rejected if you have recently made large purchases or if your credit score is low. You shouldn’t be making large purchases anyway so I can’t say as if I blame the banks for this stipulation.

5 – If you have a second mortgage with another lender, they will likely require you to get approved for the Making Home Affordable Program on your first loan before they will consider a change to your second mortgage. If you are accepted for the program on your first loan, it’s easy to submit the same paperwork for your second mortgage.

6 – This should not be your only option. It’s worth a try, but don’t fool yourself into thinking this will solve your problems.

7 – If your home is not a Fannie Mae/Freddie Mac mortgage, this program does not apply to you… BUT some lenders are still willing to modify other types of loans.

8 – This is a voluntary program. No one HAS to help you. Sure it’s good business sense to lessen foreclosures on the banks part, but if you are a problem child, don’t expect any help. Banks don’t want to keep you as a customer anyway. Be kind, courteous, and polite even if you are frustrated.

According to the bank’s calculations, my husband and I qualify. We are now in the first 9 week waiting period while they review our files. We have stellar credit scores and we haven’t made large purchases in a long time. We are good candidates for an interest rate reduction from the over 7% it is currently, down to the market rates of 5-6%.

Do I really think it will really happen?

No. But it’s worth a try.

Posted by Beks on October 23, 2009 at 5:00 AM in Credit Reports/FICO, Debt Updates, General Debt, General Personal Finance, Good Info, Home Ownership, Loans, Making Home Affordable Program | 12 Comments »
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Dealing with Making Home Affordable…

I am throwing the white flag…

and applying for the Making Home Affordable program.

Yesterday, I left work early and made THE call. My call started at 5:07 p.m. and ended at 5:57 p.m.

I called the Making Home Affordable number on my Bank of America mortgage website and waited 17 minutes on hold. Someone answered and transferred my call since my mortgage used to be a Countrywide mortgage and they had a separate division.

I’m fairly certain they routed my call around the world because really, what else can explain the 24 minute hold time and the gentleman who sounded like had lunch in Bangladesh. He asked for my name, account number, checked my account, thanked me for paying on time, and told me I would be transferred yet again to a representative. 9 minutes later, a message said, ‘Our office is now closed. Please call back another time.’

I would give you advice on dealing with the Making Home Affordable program but since I didn’t talk to anyone, I will tell you this… you need more than an hour.

Dear Bank of America… I had far better things to do than spend 50 minutes of my life listening to Kenny G. and the recorded reminder that someone will be with me shortly. Obviously you and I have VERY different definitions of ‘shortly’ AND, I had to drink three glasses of Chianti just to keep my ears from bleeding.
Ugh. Kenny G.

I’ll let you know how it goes… if I ever get through.

Posted by Beks on October 15, 2009 at 5:00 AM in Confessions, General Debt, Home Ownership, Loans, Making Home Affordable Program | 21 Comments »
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TERMITES!!!

When my husband and I started looking for houses back in 2006, we stumbled across a BEAUTIFUL townhouse. It had hardwood floors, granite countertops, mirrors everywhere that made it seem huge, and it was located in a perfect area.

Our realtor praised the beauty of the townhouse until he spotted… termite dust in the corner.

A LOT of termite dust. And the more we walked around, the more we found. Those hardwood floors showcased the busy work of those nasty bugs.

The place was loaded – so our realtor recommended we move on. I had wanted the townhome badly and was heartbroken at the sight of that nasty termite residue.

Fast forward three years to two mornings ago. I had flipped my head upside down while blow drying my curly mess and was staring at my bathroom floor thinking a nice mop job would go a long way when suddenly I spotted IT. IT was a pile of termite dust.

I dropped my blow-dryer – and screamed.

I looked heavenward and said, ‘Gee thanks Lord. As if I don’t have enough to worry about – job loss, money, etc. You send me pestilence?!?!’

I ranted and raved for three days. I cried. I told Chris that if we didn’t lose our house to job loss, we’d lose it to the dang termites that we can’t even afford to eradicate.

Then this morning, I dropped my sweater on our driveway. I bent to pick it up and noticed termite residue on the asphalt. As I start to scream in anger, the wind blew and ‘termite dust’ tickled across my face and into my hands.

Turns out, our tree is shedding tiny bits thanks to the sudden turn in the weather. The ‘termite dust’ is actually our tree sneezing into our bathroom window located directly under it and across our yard.

So. Um. Sorry for the yelling Lord. And, um, if it’s not too much of a bother, could you keep the real termites away?

Posted by Beks on October 13, 2009 at 5:00 AM in Home Ownership | 8 Comments »
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Pictures…

Reader, Mysti, asked me to post photos of the completed bathroom. Here they are…

Bath 3

Bath 4

Bath 5

Bath 6

Posted by Beks on September 6, 2009 at 5:00 AM in Home Ownership | 8 Comments »
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Making wise home improvements…

About a year and a half ago, my husband said, ‘The shower pan is cracked and water is leaking. If we leave it, we will destroy our bathroom and mold will grow. I’m going to take out the bottom row of tiles, replace the shower pan, and replace the bottom row of tiles.’

I left to housesit for a co-worker and came home to …

Bathroom 2

My husband explained that he had discovered mold under the floor and in the walls and decided to replace everything to be safe.

So why… why… why… did I assume that when we intended to insulate the separation closet wall in a 50 year old house, that we would simply be able to insulate the closet wall?

This is our spare bedroom as of today…

P8311412

A few days ago, my husband asked if he could insulate all four walls. We both agreed that as long as we had one wall down, we should take down the remaining three walls, fix the electrical, and fix the phone line. Total tab so far? $142. I am so very thankful to be married to a talented construction man.

When making decisions like these, it’s hard not to want to put it off until later or take the easy way out. What we constantly have to consider is: Is this going to cost more later if avoided?

My nearly $200 electric bill tells me… I should have done this two years ago.

The good news? Energy improvements, including insulation, are tax deductable. Yes!

Want more info? Go to: energystar.gov/taxcredits

Posted by Beks on September 4, 2009 at 6:59 PM in General Debt, General Personal Finance, Good Info, Home Ownership, Living Frugal, Spending Money | 9 Comments »
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Losing Income…

One of our roommates is moving out on September 1st. We set aside money to cover the loss of rent for the month so we’re still on schedule. I was looking forward to having a quiet month with some alone time with my husband but it looks like I’ll be serenaded by the sounds of hammers and saws. We are using this time to tear down an interior wall between our bedroom and the guest bedroom to add insulation and soundproofing before the new roommate moves in at the end of September. If I want alone time with my man, I’ll have to throw on a hard hat, a ratty t-shirt, and an old pair of jeans. You can count me in whenever sledge hammers are involved.

I’m fortunate to be married to a hardworking construction genius who can do the work himself (plus, my husband looks irresistible in safety goggles). We only have to pay for the materials which should run about $100.

Why are we insulating? Our house was built in the 1950’s and no insulation was used on any interior or exterior walls. Our heating and cooling bills are much higher than they need to be. The initial expense of the upgrade will be quickly paid for in lower electric bills plus, it’s better for the environment. And… our new roommates are newlyweds – that’s reason enough in itself.

It always seems like when we have an opportunity to get ahead, the necessities of life burn through the cash. Between tuition costs, new dog vet bills, and the two weddings, we have had to pony up more than $3,000 in the last two months.

These expenses would have buried us in the past, but careful planning and frugal spending have kept our heads above water.

Posted by Beks on August 25, 2009 at 5:00 AM in General Debt, General Personal Finance, Home Ownership, Life Experiences, Living Frugal, Monthly Spending, Spending Money | 7 Comments »
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