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1-11-12

January 11th, 2012 at 10:27 pm

I have a few no-spend days. It feels like deprivation and no benefits because much of the surplus has been earmarked for end-of-month utility bills, ensuring a zero balance for the next credit card, and the semi-annual auto insurance.

We were warned by the pediatric dentist late last year that she would be an out-of-service provider. Fortunately that issue was resolved very recently (we should get our letter in the next two days).

Learned that our charges for water, waste and sewer services are 34% below average residential.

The problem: my brother is straddling hope/expectation that our two families will vacation together. I won't do it if I can't afford it, and yet I sense I will be buying a car soon. I am now putting out feelers for a relax-pace, part-time temp job for four months.

I have a question: do you know any home mortgagee who did at least one cash-out refinance in the past seven years who presently does not regret her decision?

Update: A man who nearly lost his house to a Sheriff's Sale last year has been arrested a year after breaking into a woman's house across the street, tying the woman with duct tape, taking her debit card and demanding her PIN. He didn't refinance in the last seven years, just bought in Nov. 2005, like the guy in the BottomLine MSN article, and didn't have the means to pay his mortgage for several months. He didn't have a serious criminal history before then. I've got to keep tabs on my neighbours now!

4 Responses to “1-11-12”

  1. My English Castle Says:
    1326325963

    Paulette: Are you eager to go back to work? Or would you rather be around home?

  2. PauletteGoddard Says:
    1326327312

    I am eager to be fulfilled. I'd rather be at home than doing a job that benefits nobody, and rather be working than at home. Housesitting sounds great -- especially house-sitting if it means taking care of and walking animals who are anxious and who upset neighbours when left unattended.

  3. MonkeyMama Says:
    1326327320

    Yes I do. For reference, refied last year for a small sum to repair roof, paint house, etc. I can't wrap my brain around why they needed to borrow and couldn't pay cash, but they seem content. (Their income is very high, and they are frugal, so just doesn't 100% jive with my impression of them).

    That said, I hardly know anyone else who didn't foreclosure or who isn't foreclosing. Most of them borrowed large sums for cars and lifestyles they could not afford. Though home prices were almost 200% higher a few years back, I actually don't know very many people who bought high. Cash out refinancing was much worse of a problem. The price was foreclosure.

    Interestingly, the worse off I know bought at the lowest. They borrowed the most - in many cases $100k - $300k. For what? Lord knows. Clearly for lifestyles they couldn't afford, and lots of cars. That part is the obvious. OF course, many gambled in stocks too.

  4. PauletteGoddard Says:
    1326327966

    MonkeyMama, I'm gratified to learn a recent refinance for a small sum didn't negatively affect the homeowners in your anecdote. Admittedly I don't know how large a sum has to be before a refinance qualifies as "cash-out": we refinanced for $2240 more than our balance last year, but I'd hardly call that a cash-out, as we didn't get any money at closing.

    I saw two interesting Notice of Trustee Sales in my county where the foreclosed had purchased the properties in 1994 and 1995 respectively, for under $150,000, and now owed over $300,000. One had refinanced six times from 2000 to 2008, not including home equity lines of credit.

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