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 lost my home in foreclosure last year. That happened
around September of last year. Before that ever happened though,
I had moved out of the house and into a rental apartment in the
area. That was April of last year (Yes, I moved out of the house
well before the foreclosure was ever final). Now it is February,
and my 12-month lease on this rental apartment is now up for
renewal. It is hard to believe I have lived in this apartment
for almost a year now. I will be thirty-seven (37) years old
this year, and I am learning that time flies by faster and
faster as you get older.
Now, my big question is do I want to renew the lease for
another year?
There were some
problems with the lease agreement that I have since worked out
with the leasing office. For instance, there was nothing in the
lease agreement at all allowing me out of the lease should I be
laid-off from work. After a few emails, the leasing office and
the apartment (condo) owner agreed to amend the lease. This was
not a difficult change as the economy has changed drastically
with big companies (and I work for one of those big companies)
announcing layoffs on a daily basis. I do not feel nearly as
secure in my job this year as I felt last year. A layoff clause
was a completely legitimate request, and I am glad that I read
through the lease agreement thoroughly and made the request.
Now that I have the
layoff clause in my lease, I feel better about signing the
lease. Before I do that, however, I have other options that I
need to consider as well. For instance, I could live elsewhere.
I could move back in with my family. My grandmother passed away
last year (we are a close family and this was a truly awful
thing for us all to go through). My grandmother's house went to
my mother. It is now empty so I could move in there. It would
save me a ton of money and help my family, but I absolutely
dread the idea of moving back home. It is an old house in rural
Alabama a two hours drive from the coast. I could live there,
but I think that I would hate it.
Another option would be
to move into one of my other condos. I have two condos down here
near where I live currently. The problem with these is that they
will both be going back in foreclosure soon (although not sure
when). I could move in (and I have a lot of furniture), but then
I would have to move back out once the foreclosure dates are
announced... unless I start making payments on the one I move
back into. This is not too far fetched of an idea. The only
problem with this is that I bought these condos at the very top
of the real estate market. The mortgages are huge. Still, the
mortgage companies might be more willing to reduce principle
balances with all of the stimulus and TARP money flowing into
their coffers. I think I would only move back in to one of these
condos if the mortgage company works me a deal on the principle
so that the monthly mortgage payments are reduced.
That's it. Those are the
only other options that I think I should consider: Renew my
lease, move back home with my family in rural Alabama or move
into one of my other condos and pick back up the mortgage
payments. There are significant pro's and con's to each of
these. I find myself changing my mind on a regular basis. Of
course, time is running out. I have to decide about my current
lease before the end of February (and it is already the 7th of
February).
Let me briefly present the good and the bad on my choices.
If I renew my lease, I do
not have to worry about moving or moving utilities. I would,
however, not be able to save either of my condos from
foreclosure.
If I move into one of my
condos (only if I take up the mortgage payments again), I might
have to pay a lot more money each month in mortgage payments
than I currently pay in rent (it might even be more than I could
afford, even with roommates). Of course, I would be investing in
something that I own and might eventually profit by selling it
in the future for a higher price. Hurricane season, however, is
just a few months away (and I did get wiped out in the condos in
2004).
If I move into my
grandmother's old house, I would save a ton of money as the
house is paid for - there is no mortgage. My mother would love
it as she lives right beside this house. I, however, would hate
living away from the beach and would be miserable.
Of the three choices,
moving back home with my family is probably the best idea while
renewing my lease is the most likely.
What to do? What to do?
If you have a strong feeling about which way I should go,
send it to me in an email (Noah@ShortOnChange.com).
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