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Posts tagged with: payments

Walking Away from a Mortgage…

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I’ve know I’ve told the story before, but here’s the Reader’s Digest version about our home. We purchased our home in 2007. Since that time, the value has dropped more than $125,000. After we both lost our jobs and I took a new one making far less money, we shaved our spending and are still able to make the payments and reduce debt.

When people hear how far upside-down we are on our home (a common topic in southern California), a good number of them ask… ‘Why don’t you walk away?’

Sunday night, 60 Minutes aired a segment called ‘Walking Away’ about homeowners who can pay their underwater mortgages but choose not to. Nine states forbid banks from chasing other assets, making this process nearly painless.

According to these homeowners, ‘it’s a logical business decision’, ‘it’s legal’, and ‘it’s the right thing to do’.

In fact, there are companies who help you through the process (for a fee of course). One of them is called Youwalkaway.com who says their greatest challenge is convincing people that this decision is not immoral, it’s a business transaction. Homeowners, who can pay their mortgage, live in their homes for free until foreclosure and store up cash for their next big purchase.

Maybe I’m in left field but…

First, I do believe this is a moral decision. I don’t care if I had a lame bank or made a bad deal, I made the decision to take the deal and as long as I am able, I will hold up my end of this nasty bargain.

Second, this is a selfish decision. Sure, these homeowners will save themselves an instant wad of cash… at the expense of their neighbors, their fellow homeowners, and in the end… themselves. One way or another, you and I have to pay for those losses.

Third, no one learns a lesson when there is no loss. The show talked about people storing up cash and buying more things. If you don’t suffer the loss, you simply can’t learn from the lesson and you will make the same stupid mistakes over and over again.

We’ve learned that when people ask about our underwater status, we smile and say ‘Eh, we’re not concerned. We’re staying for the long term and don’t keep track.’

We made a BAD, BAD decision and it’s a lesson we will pay for 125,000 times but I certainly don’t expect others to foot my bill.


Job no more…

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If you are waking up to go to work this morning, you have something my husband does not…

A job.

He was laid off on Friday.

I’m struggling with this not only because of the lack of significant income but more because of how it happened. There were two employees laid off on Friday. The other employee was given three days notice, my husband was given no notice. I could understand if my husband had been at all unreliable or perhaps a bad employee, but he was neither. They simply needed some final projects completed and were worried he wouldn’t put in the extra overtime to complete them if he knew he wouldn’t have a job by Friday afternoon.

My husband has worked at this company for SIX years. I expected better from them.

I’m dealing with it the best way I can. I’m working to reduce, reduce, reduce. I’ll go more into that later.

I’m also trying my best to be something I am not – optimistic. Here’s my new list of reasons it’s G-R-E-A-T he’s unemployed:

1 – He can make all those mid-day calls to businesses only open from the annoying Monday through Friday 8-5 window. I’ve been trying to call my bank for YEARS!

2 – My husband, who is far more talented in the kitchen than I am, will cook more. Sure it will be Ramen, but it will somehow taste better since he’s making it.

3 –We won’t be weighed down by worries about job loss.

4 – We will be more creative in our bill pay process. Perhaps San Diego Gas and Electric will accept peanut butter cookies and hugs for payment? How about if the cookies are homemade?

5 – I don’t have to worry about my car getting repossessed because… I OWN IT!! And, we’re ahead in payments on the truck so we have some glide time.

6 – I will be able to empathize, once again, with some of my readers on what it’s like to not have a job and wonder how on earth we are going to pay the bills.

So here’s to my struggling readers – I’ve been there before, I’m there again, and we’ll survive it.


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