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Elephanthead posted:I can't imagine buying a second property when the first one is so far underwater. Do you live in a recourse state? Strategic default, three years renting a house in the school district you want, then purchase or continued renting looks pretty good as option 3. Florida is non-recourse, and walking away at this point would be the logical thing to do. However, this does not factor in Zwife.
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| # ¿ Mar 6, 2012 16:54 |
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| # ¿ May 26, 2013 01:31 |
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zaurg posted:You sure about this? Everything I searched said the opposite. http://abcnews.go.com/blogs/headlin...ecourse-states/ Use this information at your own risk though, I am having trouble finding a source I trust.
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| # ¿ Mar 6, 2012 18:45 |
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I don't begrudge Zaurg getting a 1k/month renter in his condo when he is ~$40k or so underwater, given it will take a decade of nonstop renting the place out before he sees a dime of profit. I am not sure why you think that just because the rent more than pays the mortgage that you are getting anything out of this deal.
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| # ¿ Mar 12, 2012 02:23 |
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Orange_Lazarus posted:Honestly, my perspective on this whole situation would probably be much different if I had a child. My wife and I put ourselves through, sometimes rather extreme, frugality but we don't have children. But he is not contributing to savings and retirement, and there is very little left over after bills to do that (if it doesn't just get spent anyway), and the debt is really going to keep this from being a possibility?
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| # ¿ Mar 15, 2012 20:28 |
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Zaurg, have you researched the potential increase in property taxes due to your condo no longer being a primary residence, or the taxes you will have to pay on the rent money you collect?
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| # ¿ Mar 16, 2012 02:44 |
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zaurg posted:No and no, didn't think of those. Are you a member of an HOA and have you declared to them your intent to rent? Some HOA forbid renting, but I doubt yours would if you had one. But you do need to inform them usually. I don't know what the tax laws are in Florida, but in many states, property tax structure is vastly different depending on whether a house is a primary residence or a commercial/rental property. And when I say vastly different, it can be orders of magnitude different. Also, the money you collect as rent becomes taxable. Now, there are deductions for sunk costs of course, but it is not free money.
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| # ¿ Mar 16, 2012 03:59 |
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zaurg posted:HOA yes. Haven't informed them yet but yes we have to. It may not be. Then again, it may be vastly different. Don't you think this is something that is important to know before you make decisions? I mean, you have already found a tenant but you have done no research on landlording?
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| # ¿ Mar 16, 2012 13:30 |
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zaurg posted:According to my wife you can't plan for everything. That's what she says every time I bring up something new like the property tax thing. But you can do some basic research when entering into a commercial venture (renting a condo). It would be a million times easier (but less lucrative) if you contracted a property management company. However, think about this: The place I live in is blowing rust colored dust out of the vents and not blowing cold air. Unless I can find something in the furnace that is causing the problem, my landlord is going to have some major HVAC repairs to make. It is 85 degrees in my bedroom at night, and I am getting pissed. This is on top of the washing machine not working. The property management is balking at making the repairs, so I am going to send a certified letter with a timeline of expected repairs and consult a lawyer. If things do not improve soon, I will be withholding rent in an escrow account. Oh, the house is only about 8 years old or so. You could be my landlord. You could be on the hook for major repairs soon, or your tenant may gently caress you. Who knows, but the answer here is that you do not know. And because you are in debt, you are not in a position to absorb risk. Renting your condo makes tons of sense, if you owned it outright. quote:She's so deep into the idea now that we're going to get a fresh start. A change, etc. And backout out now is going to cause a lot of craziness. Looks like I have till Monday to tear up the GFE/Lock in rate/and Gift affidavit. Oh yeah, now I have to make my mom lie and say the 15k was a gift not a loan, to help our debt-to-income ratio. I don't really like digging into your personal issues with your wife, so I will leave that alone. But realize that at this point you are going so far into debt that you cannot realistically predict when you will be debt free. Not only that, you have made it harder to service your existing debts. You are indebted to your family. It will now be infinitely harder for your family to absorb any unforeseen gaps in income. You are denying your daughter hope at a financially secure family situation, increasing the chances you might one day have to choose between feeding yourself or your daughter. Yes, I know that last part is a bit hyperbolic, but realize that the path you on has made this a distinct possibility when you could be making choices that reduce the likelihood of this happening to near-zero. I know it is easy to give in to your wife, but since she is the irrational one, you need to step up to the plate and be the person that actually serves the best interests of your family.
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| # ¿ Mar 16, 2012 15:00 |
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Also, consider this ZBro: If you go through with this, you are likely looking at maintaining a negative net worth for probably a decade or more. Your daughter will be in her teens, and your net worth will be negative. If you moved out, rented a place, perhaps a smaller one in a nicer school district. Make a few personal sacrifices, get your budget down. Walk away from your underwater condo. Even if you get stuck with a tax bill from recourse, you are probably looking at having a positive net worth within 4 or 5 years (maybe even sooner if you really make some cuts), and your credit will be completely repaired by 7 years. So, if you go through with this, you will be in your exact same situation 10 years from now, or if you do what I suggest, you could be debt free and kicking back some killer savings, college funds, and retirement funds, and in a position to buy a cool house with no PMI in less than 7 years. And it is not like the sacrifices you need to make are horribly significant. If your living conditions are really that depressing for your wife (and your place is not bad at all.....) then she needs to figure out a way how to get out and be active rather than be at home.
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| # ¿ Mar 16, 2012 15:15 |
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Awesome ZMan, and when your wife inevitably kicks you out of the house, you can come crash on my ComfySack.
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| # ¿ Mar 17, 2012 00:07 |
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Zaurg, something I just realized... You are buying a high maintenance house with a pool, a sprinkler system, a yard, landscaping, and God knows what else, and you don't have anything in your proposed budget to cover these items that can easily run you hundreds a month (unless you just don't take care of them, which is a lot of work, in which case they will eventually cost you more in repairs). And your utilities would likely increase by a significant amount. I mean, a pool by itself is tons of work and money. Did you guys think about this?
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| # ¿ Mar 17, 2012 14:08 |
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zaurg posted:Actually had an adult conversation with wife today. Went to park to get out of the condo while we talked. Minimal crying involved. Honest thoughts shared. If she would divorce you over this, would you really want to remain in a marriage with her anyway?
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| # ¿ Mar 17, 2012 20:36 |
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zaurg posted:No, I mean a bedroom / office combo would be nice. I currently usually sleep on the couch so that would be a nice upgrade. OK, now you are just trolling dawg.
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| # ¿ Mar 19, 2012 20:32 |
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resident posted:I like how you guys act like his mom actually expected repayment. In her mind, it probably is a gift. She was just allowing him to keep what little pride he has left in his life by thinking he was going to repay her but when it really came down to it she would tell him to just keep it anyway. The best part is that this loan is contingent on this being a gift, having a fulltime renter at what seems to be an unsustainable rent in a condo with known issues, and the elimination of their entire savings. This loan literally puts them one mishap away from bankruptcy and the loss of everything. Lose your job for 1-2 months? Crippling debt. Medical emergency and your insurance fights you on it? Crippling debt. Condo requires repairs, the renter bails, or the renter trashes the place? Crippling debt. Your daughter wants to go to a good college but can't get a full ride? She now has crippling debt because of your bad choices. All of this, just so you can have a separate room to sleep away from your family.
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| # ¿ Mar 21, 2012 14:51 |
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zaurg posted:I said almost these exact words to wife and her response is always that I'm pessimistic, always looking at the worst that can happen, and "what if GOOD things happen like the renter is as reliable as I say... we both excel at our jobs and get raises... I go back to working my 2nd job for a couple hours a week for some extra cash, etc." How do you know the renter is reliable? Did you pull his credit? Did you get past references? Which is more likely in this economy, you go on to get fabulous raises or you stagnate or possibly get laid off? Medical emergencies are a matter of 'when,' not 'if.' People love to believe they are immune, but it simply is not true. Being the healthiest person on the planet does you no good if a drunk driver hits you or runs you over and you have to go on long term disability. It is not pessimistic to consider these outcomes and put in place a plan that allows you to absorb risk, so that you are not one step away from disaster. People and businesses do this all the time because it is the smart thing to do. Ignoring risk is simply idiotic and ignorant.
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| # ¿ Mar 21, 2012 15:50 |
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Yes, this thread is about Zaurg, not Cornholio. And even if Cornholio is a hypocrite, it does not alter the validity of his statements.
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| # ¿ Mar 21, 2012 20:39 |
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zaurg posted:I actually like her today and I haven't contemplated suicide since I was 17 or something. Is this damage control for her coming into this thread or are you simply admitting you have been trolling us?
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| # ¿ Mar 23, 2012 12:36 |
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Vomik posted:Like I mentioned up above it was obvious he was joking as I know that florida is a 2 year suicide clause Well I know the suicide thing is a joke, but the whole "I like my wife now" basically contradicts his posting, or at least his projected attitude toward his wife.
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| # ¿ Mar 23, 2012 14:43 |
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UCS Hellmaker posted:Starting to think his wife took a frying pan to his skull for either this thread or not sending the paper work in for her brand new home away from him. Not a likely scenario. More likely is that she told him to knock himself silly with a frying pan, and when he refused, had two anxiety attacks and cried until he bludgeoned himself stupid.
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| # ¿ Mar 24, 2012 17:29 |
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Vomik posted:It's just because of the $15k. It's impossible to immediately gain net worth on buying a house. If there were absolutely no friction costs (cost of moving, cost of closing, realtor fees) it would only be break even. Even then, your net worth consisting of equity in your home is pointless. At the end of the day, you still need a place to live. Sure, you can liquidate your home, but then you have nowhere to live.
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| # ¿ Mar 26, 2012 20:15 |
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zaurg posted:
Just so we are clear on this, you do agree with us that just because you can pay your bills month to month does not mean it is possible for you to sustain that forever, and that a good financial cushion can mean the difference between bankruptcy and normalcy, right?
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| # ¿ Mar 29, 2012 17:23 |
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Zeta Buttforce posted:Dave Ramsey says lots of things, but I’ve never heard him say that it’s OK to go into debt but only if you are prepared to work extra hard to cover all the payments. Yeah, he says you get the second job first, save up all the money to make the purchase, then you do it with cash in hand. That is an intentional misinterpretation.
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| # ¿ Mar 29, 2012 17:37 |
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Just as a general FYI, I was talking with a coworker yesterday evening, and he was talking about how he is finally getting close to no longer being underwater on his mortgage. He has owned the house for 10 years, and refinanced it a year ago or so under the first HARP program, and is still underwater. He is mad that he cannot refinance again under HARP 2.0. We are both roughly the same age. I have paid less in rent and mortgage payments over the course of my lifetime (I mostly rent, owned from 2005-2008) than this man has paid in mortgage payments on his house for ten years only to still be upside down on his loan. And he tells me I am dumb for not buying. This is how hosed up people are in America about buying property.
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| # ¿ Mar 29, 2012 21:09 |
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Zaurg, you have probably said so, but it would be buried so I might as well ask now: How many rooms does your condo have?
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| # ¿ Apr 5, 2012 14:41 |
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zaurg posted:2 bed, 2 bath, 1200 sq ft. No big deal in my opinion for 2 parents and 2 kids. I agree with this, I was just making sure it wasn't a shoe box, which it is far from being. I have no idea what your wife's ethnicity is, but she is definitely suffering from White People Problems™.
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| # ¿ Apr 5, 2012 15:47 |
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ryde posted:Its not so much a race thing but rather a class thing. So really First World Problems™. No, First World Problems™ is living in a 600sq. ft. 1 bedroom house, having a baby or two, and wanting to upgrade to a 900sq. ft. 2 bedroom. What Zaurg's wife wants is to have the appearance of being in the Privileged Elite, but since that attitude is so strong in the US, we have completely taken for granted that privilege. We consider it normal, even "middle class." We are so out of touch.
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| # ¿ Apr 5, 2012 18:35 |
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zaurg posted:Ok. I can get that. It's a mental thing. Yes, this type of savings is supposed to have a purpose (emergency funds if you lose a job, down payment on a house, etc.) and once you breach the mental barrier and say it is OK to touch it for other things, you open the floodgate. Plus, it is good to have a nice cushion in case something goes horribly wrong.
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| # ¿ Apr 6, 2012 18:56 |
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zaurg posted:Regarding the smell, I didn't notice much of a different. I asked wife and she said she is so used to it she doesn't notice it If the cat is pissing and making GBS threads everywhere, you need to take it to the vet to find out what is wrong with it. If it is terminal, put it down, if it is curable, cure it.
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| # ¿ Apr 10, 2012 00:58 |
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| # ¿ May 26, 2013 01:31 |
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Phil Moscowitz posted:Here's a random suggestion, but check your phone bill to see if you are getting crammed--basically shady companies start billing you for monthly "services" you never asked for or use. This same poo poo happened to me. I couldn't believe that they actually require you to opt in to the program that prevents 3rd parties from charging you for services that you never agreed to.
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| # ¿ Apr 10, 2012 03:29 |
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