Thursday, September 13, 2012
We Are Moving!
When did this all happen? What is going on? Where are you going?
Back in February of this year Alex and I came to the conclusion that something had to change for us financially. We had been scraping so hard for so many years that we finally could not keep up with the expenses and our expanding family. Either he needed to somehow start making a lot more money, or we needed to do something about our RIDICULOUS mortgage.
Six years ago we bought our little "starter" home in Kuna. Somehow we were convinced that it was ok to get into two mortgages. A primary loan with a 6.6% interest rate, and a secondary loan with a 9.3% interest rate....oh and by the way that one is a Balloon! We were thinking, no big deal, we will just sell it in a few years, get some equity, then buy another house. Our monthly payments were awful. The housing market tanked. Goodbye equity. Goodbye buyers. Long story short, here we are today, trying with all our might to get control of our finances.
At first it was a huge source of tension for Alex and I. We could not agree on the right course of action. I was resolved to just short sale the house. Alex wanted to try to get them to work with us. We both wanted to be honest. How do you even do that these days? No wonder so many people just walk away. First off, the banks could care less about you! It is as simple as that. We had one lucky break and we were able to refinance our first mortgage. We signed a new 30yr mortgage with a 4.3% interest rate. It was a miracle, but it did not free us from the looming 9.3% interest balloon loan. That one is a killer. We made a decision to stop paying that mortgage and present a settlement to the bank. We decided that if they didn't accept that, we would just short sale. It has taken ALL SUMMER! Two days ago after feeling overwhelmed with the lack of response from the bank, I did something that I definitely don't do enough....GET, ON, MY, KNEES.
I pled with the Lord to give us an answer soon. I prayed that the bank would make a decision quickly and that I would feel good about it and also that I would have the strength to face whatever comes next. In my mind they would either take the settlement and I would be resolved to live in this little house for a long time to come, Or.. the bank would turn us down and we would have to leave. THAT EVENING folks!.....we got our answer. The bank turned down our offer to settle. They told us we could short sale, but they could still come after us for the second. What a blow!
Yesterday my Mom called with a proposition. Instead of selling the house, put it up for rent. We can live in their basement which comes fully equipped with 3bds, 1 bathroom, a kitchen, and a living space. I mean the square footage is bigger than our current house. We could stay there rent free and take the rent money we make and knock down our 2nd mortgage. Sounds crazy and not so fun for my hubby, but who gets this chance? I will tell you this, my parents have a place in heaven. They are the first people to extend a helping hand to those in need. They have done it with many before us and we couldn't be more grateful. The light bulb went on and I just knew this was the right step.
This morning I listed our house for rent to be available by October 1st (two weeks) and I got someone who will be a great tenant! Maybe I'll tell her story later, but I couldn't be more pleased. With that being said, I have been overwhelmed with sadness. We have been here for six years! We have had three of our four babies in this house. Christmases, Snow sledding, sitting by the pool, last minute dollar tacos, the list goes on. I have made the best friends I could ever ask for, they are literally like sisters to me and it tears me up to leave them. I drive by my girls school and think about all the great friends my little Dejah has made. She has talked about them everyday since she started school three years ago. You would think the way I talk that we are moving far, and as much as I tell myself that 30 minutes is not that far, I am also reminded that it isn't close either. Anyway, I need to stop crying about it. I still know this is the right thing. It will be new and scary and will be better for our financial future. So there it is in a nutshell. I have two weeks to get everything packed, moved and cleaned. Wish us luck!
Posted by Anna Beal at 10:21 PM