Disclaimer: I am not a lawyer. I am
only publishing my interpretation of my situation. You should seek your
own legal representation for your own particular
situation. Do not rely on my
opinions or statements for your own purposes as state
and local law varies as do individual circumstances.
I had to pay a $300 deposit to the electric company this
week as my family is changing the utilities at my grandmother's
house over to my name (my grandmother, sadly, passed away last
month after open heart surgery). Even though I am going through
hard times now with my three foreclosures, I am still doing
better than the rest of my family through these hard economic
times. The electric company is a small electric cooperative in
south Alabama. I had hoped that they would see my other utility
accounts with other utility companies and not charge me a
deposit, but they did not do this. I think they just grabbed my
credit report from one of the three credit reporting agencies
(Equifax, TransUnion or Experian), saw the delinquent account
list which shows my three real estate properties that are in
arrears and the one judgment against me for unpaid condo
association dues (which have been paid and the judgment should
be removed shortly) and decided to not grant me a waiver for the
deposit. It just goes to show you that when you are down
financially, it is especially hard to ever get back up on your
feet.
I will probably have to
do the same for the other utilities. Luckily, that will only be
the telephone. My grandmother did not have cable or gas. Being a
rural area, my grandmother only had broadcast television
available and a gas tank behind the house for heating. There is probably a
water bill and a garbage bill. These will probably pull my
credit report as well, see the bad marks and require that I pay
a deposit.
This is a very good
lesson for anyone possibly facing foreclosure to learn. If you
are eventually going to have to move out of your house due to a
foreclosure, save up some money as you will have to pay deposits
like these that I am having to pay now. Three hundred dollars
($300) for a deposit at the electric company is not a cheap
deposit (the bill each month is usually less than $100). Plan on
deposits for all of your other utilities (cable, gas, telephone,
Internet, garbage, water, etc.). If you are moving to a rental
apartment or house, plan on a deposit for moving in as well
(these are usually pretty hefty, like first and last month's
rent).
The good thing is that
these payments are deposits, and you should get these back
whenever you eventually close the account. The bad thing is that
this is money out of your pocket when you are already having a
tough time making ends meet.
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