All Forum Posts by: Pam Grim

Originally posted by Jon Holdman:

Ouch on the truck! Just shows why cars are such a bad deal. I'm just going to start using my Heros flying ability to get around and give up on this car thing!

Another good idea! Why didn't I think of that! ;)

I purchased Dave Ramsey's book this weekend. Good stuff.

Thank you Minna, Heather and Bob. I heard a story, one of those friend of a friend type things. The guy in California went into the bank, he was all sorts of upside down in his loan. He told them that he was currently making the payments but that it wouldn't last. He said they eded up reducing his principle and fixing the loan at a really good rate.

I would be ecstatic to have the loan converted to a fixed rate! I have new hope now. I had been told before that unless I make a late payment they wouldn't even talk to me. My neighbor even went as far as to stop making payments, kept the money in an account, and got then to convert the loan that way claiming hardship. He did actually lose his job but was doing side work and was still able to make the payments.

Thank you everyone for your input and knowledge. I will learn from this one for sure.

Thanks again.
Pam

Originally posted by Jon Holdman:

You should look at your loan documents and see what they say about the reset. Even if the interest rate goes down, if they switch from IO to fully amortized, the payment could jump quite a bit.

I didn't think about that either. Good point. I'll check that out. So, you think I should put an extra $250 on the 2nd mtg payment? I was thiking I'd get my card paid off and put a full $1000 on it on top of the minimun payment. I think I can have the card paid off in 6-8 months provided no major house expenses.

I'm going to go to Washington Mutual on Monday and see where they stand.

I looked up what my truck is worth on Kelley Blue book. I think I'm stuck with that bad boy. It only bluebooked at $6K and I have over $10K on it. The payment is $250 and to fully insure it is $42 per month. (Yeay Progressive. State Farm was charging me $105 per month. I just switched. I think I'm gonna put my houses under them too. I never have any claims and if its a lot less it could reduce my payments as well.)

I'm also gonna go look for that book you suggested this weekend Jon.

Thank you all.

Originally posted by Jon Holdman:

Pam, Is the loan a pay option arm? Are your current payments less than the interest? If so, you should be making at least a large enough payment that you cover the interest.

My minimum payments cover all the interest, but no principal. I usually add $50 to $75 towards principle though. Good point.

Tom, I never thought about the payment going down...maybe rates will stay low? The 1st mtg, which is the one I'm worried about, is at 6.5% until mid 2011. The credit line is flexible & was at 9%, but has decreased down to 4.5%. My total payments went from $1800 to $1550, so that was good. I would like to hurry up and get the cc knocked down so I can get more bang for my buck paying down the 2nd mtg while rates are low.

Thank you again.

Originally posted by David Peeples:

What do the room-mates pay in rent? Seems to me that a $245,000 loan should be survivable on $40K if the room-mates are paying a fair rate.

It is actually. I can pay for the house and all my expenses on my income. but I can't chunk down my CC or truck with it. I use the room mates $1000 rent (combined) to pay off my debt. My choice in room mates was poor, I got one that was cranking up my AC while I was away and using all my food and supplies, but I didn't do anything about it. That was a lesson learned, instead of a flat rate (utils included) I'm gonna lower the rent slightly and make it include 1/3 of the utilities. When my utility bill is over $500 they're gonna feel it too. Also once rent is late they're outta there. No feeling sorry for them.

Jon, thank you, I will get that book. One place right off the bat that I see I'm doing wrong is not saving money. I put every ounce I have on the cc and then have no emergency fund. Then the med bills come up or repairs are needed and I have to re-use the card.

David, maybe if I just constantly bug the bank, they'll let me convert it. Maybe every couple weeks go in and talk to them? See whats available.

Thank you again for your help & insight.

Not harsh at all. That's what I was looking for.

I hope to be able to preserve my credit so I can purchase a rental house again.

I want to make sure I'm on the right track. I'm not a fraid of steady hard work and several room mates. I know I blew it, but i don't want to run away.

I didn't think about the pool that way. I always considered it part of the house maintenance.

Thank you Christian.

You guys gave me some excellent advice on a problem tenant that I acted on and am way better off for it. I wanted to get your advice on what my direction should be going now.

My situation is this.

My husband and I bought out first house. We used 30K from the credit line on our first house to put a down payment on and fix up a 2nd house. Both are 5 year arms. (We asked for 30 year fixed on both but the mortgage broker said it wasn’t a good investment choice, so we did what they said. It was a dumb thing to do; we should have stuck to our guns.)

We have since divorced and each took a house. I can’t afford my house by myself. So I have 2 roommates. In 2 years my interest rate will flex and my payment will increase. Even with 2 roommates I don’t anticipate being able to afford the payments once they increase. My house has 254K on it and is probably only valued at 160K right now (according to zillow).

The only other debt I have is my truck (about 10K) and a credit card ( about 8K) from when I was laid off that I can’t seem to pay down. (Had it down to 3K, but then my AC and pool broke, and I had some unexpected medical bills.)

My question is this.

My current plan is to pay off my credit card and my truck so that when 2 years rolls around and my mortgage flexes I will have no other debt beside my house. What else should I be doing? I only make 40K per year, so I know I can’t pay down the balance on my house in time to be able to refinance it or sell it in 2 years time. Otherwise my plan would be to hunker down and pay down my house balance as well.

Thanks, Pam

Thank you all for the help.

I'm going to ask him to leave. I've thought more about the stress he's caused me through out the year and I would be better off without him.

When things are close to you like this, sometimes, for me, its hard to see the reality/ridiculousness in the situation. But after reading over everyone's comments its obvious what I need to do. If it were a tenant in a rental house, I'd be issuing the writ by now! Duh.

Thank you again everyone.

Thank you guys, I really appreciate the advice.

I think his time at my house is coming to an end! :)

I'm stress prone anyway, but this has caused me to stress more. I have a particular debt repayment plan setup for myself. With him being a month behind, its messing up my payment plan.

More so though, theres tension now, mostly from me cuz I'm pi$$ed that I didn't get paid. I don't have rommates cuz i'm lonely! I do feel vulnerable just cuz he's in my home. Thats why I was kind of looking for some insight. I wanted to make sure I was being fair & reasonable.

Originally posted by Joshua Dorkin:

Do you have an actual lease with him? You said he was your roommate. Is there anything in writing?

No, just month to month. No contract.