Comments on: PF Hour Episode 26: Jim and JD Talk About Personal Finance Rules of Thumb http://personalfinancehour.com/pf-hour-episode-26-jim-and-jd-talk-about-personal-finance-rules-of-thumb.html Home of the radio show hosted by PFBloggers JD Roth & Jim Wang! Fri, 26 Feb 2010 03:54:49 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: admin http://personalfinancehour.com/pf-hour-episode-26-jim-and-jd-talk-about-personal-finance-rules-of-thumb.html/comment-page-1#comment-3721 admin Sat, 21 Nov 2009 16:12:16 +0000 http://personalfinancehour.com/?p=181#comment-3721 I'm afraid I don't know, you have a very complicated situation and one that I've never personally dealt with, so I'm not sure what the best course of action is. Are there others in your area in the same predicament that you could talk to? Perhaps your bank has advisors or counselors you could talk to? I’m afraid I don’t know, you have a very complicated situation and one that I’ve never personally dealt with, so I’m not sure what the best course of action is. Are there others in your area in the same predicament that you could talk to? Perhaps your bank has advisors or counselors you could talk to?

]]> By: Sleepless http://personalfinancehour.com/pf-hour-episode-26-jim-and-jd-talk-about-personal-finance-rules-of-thumb.html/comment-page-1#comment-3719 Sleepless Sat, 21 Nov 2009 05:53:31 +0000 http://personalfinancehour.com/?p=181#comment-3719 My wife and I bought our home in Santa Cruz Calif., as a place for us to start a family… We bought the house in early 2007 for $599,000 and put $70,000 down (our entire life savings up to that point) and took out a loan from my mom for 40k at over 30 years. Now that the market has crashed in our area, our house is worth less. We are not sure what we could get from a sale of the home, but it would probably be about 70k less. Although our monthly mortgage payments are high, we can still afford to make them, but now with my wife not working and 2 kids we have no income left over after bills, we have cut all our fun spending and everything else for that matter to a minimum? If we walk away from the home we will not be able to refund any of my mom's 40k and of course we would have to loose all we ever had previously saved. If we stay in our home, we’ll be stuck for many years, and in that time we will have no discretionary income. My wife will return to part time work in the future, but we can not count on (at least for now) much in the form of a second income. We were denied a loan re-modification, And could not refinance. The bank tacked on an extra 500 dollar a month tax charge this year as well when they contacted us after 2 years and explained that we owed back taxes because they had miscalculated our payment when we took out the loan. What would you recommend we do, I understand we never should have gotten ourselves in this position in the first place, but it is too late now. I could really use another opinion.. P.S I love your show!!! Thank you so much My wife and I bought our home in Santa Cruz Calif., as a place for us to start a family… We bought the house in early 2007 for $599,000 and put $70,000 down (our entire life savings up to that point) and took out a loan from my mom for 40k at over 30 years. Now that the market has crashed in our area, our house is worth less. We are not sure what we could get from a sale of the home, but it would probably be about 70k less.

Although our monthly mortgage payments are high, we can still afford to make them, but now with my wife not working and 2 kids we have no income left over after bills, we have cut all our fun spending and everything else for that matter to a minimum? If we walk away from the home we will not be able to refund any of my mom’s 40k and of course we would have to loose all we ever had previously saved. If we stay in our home, we’ll be stuck for many years, and in that time we will have no discretionary income. My wife will return to part time work in the future, but we can not count on (at least for now) much in the form of a second income. We were denied a loan re-modification, And could not refinance. The bank tacked on an extra 500 dollar a month tax charge this year as well when they contacted us after 2 years and explained that we owed back taxes because they had miscalculated our payment when we took out the loan. What would you recommend we do, I understand we never should have gotten ourselves in this position in the first place, but it is too late now. I could really use another opinion.. P.S I love your show!!!

Thank you so much

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