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Post by Arid on Sept 24, 2008 13:54:43 GMT -5
Well, given what you now have explained about your situation, it sounds like you have NO extra money to put on the principal. You've got too many day-to-day bills outstanding.
If you plan to keep living in the house, it sounds like it would be a good idea to replace the window sashes and to get the gas bill paid before cold weather comes. You will need to be able to pay for more gas for the coming heating season, too.
I hope that you can get some good financial advice somewhere. Is there some such agency in your area? (Try to make sure that anyone you go to is trustworthy; do a little checking up on them first.)
Good luck.
Arid
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Post by brainjam on Sept 24, 2008 15:06:17 GMT -5
If you do refinance, I vote for dumping the high-pressure salesman dude. And personnel departments usually can furnish copies of income or w2 forms.
Or if work is freelance or otherwise different, perhaps not?
Brain Jam
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Post by gifted on Sept 24, 2008 16:08:06 GMT -5
How would owing more money to a bank improve my finances in the long run?
My credit is bad, and I am on a disability income. Since I don't expect my income situation to improve, more debt doesn't make sense to me. Then I am spending more of my income on interest and loan fees. When I last looked at a re-fi, the closing costs involved were about $2,000. Why do I want to basically give away $2,000 of my equity? Also, my income is non-taxable, so I cannot use the interest as a tax deduction.
I don't own a car, and I have no credit cards. In fact, if I didn't own my house, I would be eligible for subsidized housing.
It would be great to borrow on the equity, if I could get me some income, like having a roomate. But I am afraid, because I was stolen from before. The authorities would not help me, even though he stole and forged a check.
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Post by houseworkhater on Sept 24, 2008 16:46:04 GMT -5
i don't know...it just seemed like a way out of a desperate situation.
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Post by gifted on Sept 24, 2008 17:36:29 GMT -5
Oh but I DO have extra money. The money that I do not spend on groceries, if I eat food from a food pantry at a church. The money that I don't spend on my heating bill, if I apply for energy assistance. The money I don't pay to buy new windows.
I have even thought about canceling my Medicare insurance, Luckily, I never enrolled for the drug coverage, because it would have cost me hundreds of dollars a month for drugs that I can receive from the manufacturer's assistance programs. for no cost.
I could sell my house, but then if I had any money, I would probably need to spend it all on rent before I would be allowed to have subsidized housing.
If I want to attend the theater or a performance, I volunteer to be an usher, or I don't go. I don't go to the movies, and now I only borrow movies from the public library. I haven't owned a car for years, and now that I am able to walk and ride my bike, I don't even spend the $25 for a monthly pass. I do join clubs, and participate in club events, and do volunteer work. I hold memberships to two public gardens which I volunteer at. (I probably won't be renewing these.)
There are some programs to help people buy houses, but it seems there are not many programs to help people keep their houses. My house is already at the low-end of the real estate market here, and the value was about three times what I paid for it the last time I spoke to an agent. I did get an application for one program, but since I am not behind on my payments, I don't know if they will help.
My son says that the lenders don't want to foreclose and so they will work with me. I don't think so, I will be the last in line for any kind of assistance, because they will help the people who have little equity first, because there is where they will lose the money.
I really hate the way the aid programs seem to operate. Like the energy assistance, I can only apply for if I am ready to be shut off, so if I make the effort to pay it every month, I am never eligible.
I did spend money to visit my siblings in June, for a graduation. I also went away for a weekend last month with some members of a sailing club. I organized the trip, but I had to pay my own way. I hope to be awarded a sailing scholarship by them. And now, I am feeling some regret. But it is so rare that I have left town at all. And most of those trips were for funerals.
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Post by gifted on Sept 24, 2008 17:55:45 GMT -5
Houseworkhater,
I hope I didn't hurt your feelings. I know that you were trying to be helpful.
I am angry about the consumer lifestyle we have been sold in the US. The whole economic stimulus joke, to give us $300 to spend at the mall to stimulate the economy. If people don't spend money, then the economy is slow, and the press gets all agitated. If people DO spend money, then the press talks about how little Americans save! And only the politicians get to spend money that they don't have without bad consequences!
Part of the problem with the economy is that too many people thought this way, and were encouraged to do it by the lending industry. I have never seen deflation in the US, but that doesn't mean it can't happen, and it may be happening now with the housing market as it is. I am sure that there are some situations where pulling equity out is a good idea. But it is so hard to put the equity back.
And now our government is going to "help" those businesses, but whose pocket is the money going to come out of?
And the consumer culture that we have been encouraged to buy into (excuse the pun.) isn't helping our planet, our families, or our lives. Or for me and others here, our houses!
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Post by Arid on Sept 24, 2008 19:29:15 GMT -5
Clearly, we have different definitions for the word "extra." For me, "extra" money is what is left AFTER all the bills are paid. When the bills cannot be paid without assistance, there is no "extra." It's as simple as that.
I don't remember what name you used before, but I remember your situation from the old SS board.
I do hope that you are able to hang onto your home. You are SO close to having it paid off.
Arid
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