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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.
My employer announced a few thousand layoffs last week.
Only about a thousand people were laid-off last week. The
remainder of the pink slips will be delivered over the course of
this year. My position is highly likely to be a layoff target.
That would put me as unemployed and with no income. Finding
another job paying what I currently get paid will be very
difficult in the current employment market which is very tight
and filled with unemployed people. With their announcement last
week, I have already started to plan for the worst case
scenario.
My lease on my apartment
is over at the end of March. My roommate will be leaving a
couple of months after that for a new job that he got in south
Florida. I looked over the lease contract for renewal and found
very little that would protect me in the event of a layoff. In
fact, the lease agreement is pretty much entirely slanted to
benefit the property owner. If I lost my job, I would still owe
the entire amount of the 12-month lease obligation even if I
vacated the property unless the owner found another renter for
the unit (which is unlikely). This is a huge financial
obligation that I have decided no to take on. Instead, I am
going to move into one of the two condo units which I own even
though it is going into foreclosure soon. Of course, I have not
paid a mortgage payment on the condo since November 2007 and
Wells Fargo still has not foreclosed. Wells Fargo did have a
foreclosure date set for December 2008, but they cancelled that
date and have not given a new date (I think they are waiting to
see what Obama does).
It is a gamble. Wells
Fargo could set a new foreclosure date as soon as I move into
the condo. I would at least have 30 days to vacate though. Plus,
one of my neighbors says he has asked the foreclosure judge for
more time on his foreclosure and the judge granted him an extra
60 days. Regardless, I could move out pretty easily (I do not
have much left to move). I have a second condo unit in the same
complex (it too is going back in foreclosure but CitiMortgage
has not set a foreclosure date on this property either, again
even though I have not paid a mortgage payment since November
2007).
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Surely, by the time both
of these two condos go back in foreclosure, I will have a better
idea of whether or not my employer is going to lay me off. At
that point, if I feel that my job is pretty secure, I will look
at going back into a rental apartment. If I feel that my job is
heading for a layoff or if I have already been laid off, I can
move back to my family's place and regroup.
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If I go back into a
rental apartment later on, my credit score will be even worse
than it is now (although it is already pretty low). I feel
confident though that I could still qualify for a lease or find
some owner who does not run a credit check. Again though, if my
credit score is too bad to qualify for a decent apartment, I can
always move back to my family's place. It is always good to have
family as a backup.
The only reason that I
did not move into this particular condo last year instead of
renting the apartment that I have leased for the past year was
that I thought the condo would have gone back in foreclosure to
the bank months ago. Had I known that the foreclosure was going
to take over a year, I would have lived there rent free and
mortgage free for a year. I've paid the condo fees for over a
year. I've paid the utilities for over a year. I should have
been living there... if I had only known. Oh well, I will now.
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Read Related Entries
Liquidating Assets Before Bankruptcy
Moving Out
Moved to a New
Condo
From Mortgage Payments to Rent Checks
Read Recent Entries
Judgment
Showing on My Credit Report
Letter from Wells
Fargo
Credit Limit Lowered by American Express
Dealing with Inheritance
Read All Time Favorite
Entries
Credit Check for Utilities - Deposit Required
American Express Lowered My Credit Limit
Getting My Home Back
Liquidating Assets Before Bankruptcy
Before You File Bankruptcy and Before You Miss a
Mortgage Payment
From Mortgage Payments to Rent Checks
Should I Use my Credit Cards for Everyday Expenses?
Noah's Foreclosures
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