[23109VC]

you are SO right about USAA. One of the HUGE reasons why I am VERY reluctant to go the “stop paying” and just try to screw USAA is b/c they are such a good company, and I want to be a loyal customer. Most banks are just pricks…they just want to screw you, they play games with you..I moved ALL my banking and insurance to USAA b/c they have been so good. I am not military, but got into USAA b/c a relative was. USAA is the BEST insurance company I have ever dealth with. they are honest, they bend over backward to be nice to you..and it pains me to think that screwing them might be the best financial route to take.

in an era where most customers have no loyalty to their banks…and I honestly don’t care about any of the other banks I’ve had b/c I KNOW they didn’t care about me… USAA does honestly seem to care. while they aren’t giving me a free lunch on my second…they are VERY good to me on my other policies…and part of me knows that if I have to sswithc my life ins, car ins, etc..I likely will pay at least a couple hundred more a month to get similar quality service..which might just offeset any real gain my dumping the second.

boht my wife and I agree on this.

we will likley just suck up the deal USAA recently offered us to temporarily adjust our second. which saves us another $150/month.

overall, with this final concession, my monthly nut for a 1900 sq ft home in a nice part of Temeecula is about $2500. i’ll have to do the math, but my guess is i save roughly 500/month on taxes by owning vs renting. i’ll update in this thread if I find that my math is way off.

that means I”m paying 2000/month actual costs…which is what it would cost to rent this home. and i don’t have the hassle of worrying that some landlord will stop paying and i’ll be forced to move.

both my wife and I have discussed that very real possibility shoudl we opt to walk and go the route of renting..and neither of us wants to dealt with that. with small kids…moving is even more of a PITA than it already is.

we have some plans to convert half the garage into a playroom. not anyting $$ like walls,flooring. i’m talking about maybe some upgraded storage so anyting unsafe like chemicals and yard tools are out of reach..and then putting in some sof rubber mats and hooking up the spare TV. kids can have all their toys out there…in so cal the garage is never too hot or cold… our oldest boy is actually excited about the idea of abunk bed and the two boys can share their room.

we have 3…not four kids. 2 boys one girl. teh boys can share. little princess gets her eown room. everyting else is perfectly fine.

it is aggravating to see people get bigger hosues for less. soemtiems I wish i had been one of “them” and bought that 750k house in temecula..but i was one of the people that inteiontally only bought what i was comfortable affording..rather than biting off more than i coudl chew..and now it pisses me off to see the idiots who bought 750k houses on income less than mine..get gov’t bailouts to keep their fancy homes. i’m struggling to fit in mine and make my payemtn after some work furloughs..and the ding dongs that just did an option arm and bought 10x what they shoudl ahve, get to stay. it’s not right.

oh well. i can’t complain too much. i always try to look on the bright side. i have a great family, a good job. everyone is healthy. i have a pretty wife. a few nice cars. i’m not rich, but i know people who are doing way worse or have had really hard times or really difficult circumstances land in their lap. one family member recently got cancer…he would gladly trade any house for just his health…. so in the BIG scheme of life…i’ve got it pretty good and i’m really jsut bickering over peripheral things that don’t really mean a lot. it’s nice to have the “perfect’ hosue with every room just how youw ant it, but boy could things be a LOT worse.

i do appreciate all the advice i’ve received here…now and in the past. one thing for sure, the next time i think about a hoem pruchase, i’m coming here and i amgoing to listen to what i hear. there are some very SMART “in the know” people on this site.

[23109VC]

you are SO right about USAA. One of the HUGE reasons why I am VERY reluctant to go the “stop paying” and just try to screw USAA is b/c they are such a good company, and I want to be a loyal customer. Most banks are just pricks…they just want to screw you, they play games with you..I moved ALL my banking and insurance to USAA b/c they have been so good. I am not military, but got into USAA b/c a relative was. USAA is the BEST insurance company I have ever dealth with. they are honest, they bend over backward to be nice to you..and it pains me to think that screwing them might be the best financial route to take.

in an era where most customers have no loyalty to their banks…and I honestly don’t care about any of the other banks I’ve had b/c I KNOW they didn’t care about me… USAA does honestly seem to care. while they aren’t giving me a free lunch on my second…they are VERY good to me on my other policies…and part of me knows that if I have to sswithc my life ins, car ins, etc..I likely will pay at least a couple hundred more a month to get similar quality service..which might just offeset any real gain my dumping the second.

boht my wife and I agree on this.

we will likley just suck up the deal USAA recently offered us to temporarily adjust our second. which saves us another $150/month.

overall, with this final concession, my monthly nut for a 1900 sq ft home in a nice part of Temeecula is about $2500. i’ll have to do the math, but my guess is i save roughly 500/month on taxes by owning vs renting. i’ll update in this thread if I find that my math is way off.

that means I”m paying 2000/month actual costs…which is what it would cost to rent this home. and i don’t have the hassle of worrying that some landlord will stop paying and i’ll be forced to move.

both my wife and I have discussed that very real possibility shoudl we opt to walk and go the route of renting..and neither of us wants to dealt with that. with small kids…moving is even more of a PITA than it already is.

we have some plans to convert half the garage into a playroom. not anyting $$ like walls,flooring. i’m talking about maybe some upgraded storage so anyting unsafe like chemicals and yard tools are out of reach..and then putting in some sof rubber mats and hooking up the spare TV. kids can have all their toys out there…in so cal the garage is never too hot or cold… our oldest boy is actually excited about the idea of abunk bed and the two boys can share their room.

we have 3…not four kids. 2 boys one girl. teh boys can share. little princess gets her eown room. everyting else is perfectly fine.

it is aggravating to see people get bigger hosues for less. soemtiems I wish i had been one of “them” and bought that 750k house in temecula..but i was one of the people that inteiontally only bought what i was comfortable affording..rather than biting off more than i coudl chew..and now it pisses me off to see the idiots who bought 750k houses on income less than mine..get gov’t bailouts to keep their fancy homes. i’m struggling to fit in mine and make my payemtn after some work furloughs..and the ding dongs that just did an option arm and bought 10x what they shoudl ahve, get to stay. it’s not right.

oh well. i can’t complain too much. i always try to look on the bright side. i have a great family, a good job. everyone is healthy. i have a pretty wife. a few nice cars. i’m not rich, but i know people who are doing way worse or have had really hard times or really difficult circumstances land in their lap. one family member recently got cancer…he would gladly trade any house for just his health…. so in the BIG scheme of life…i’ve got it pretty good and i’m really jsut bickering over peripheral things that don’t really mean a lot. it’s nice to have the “perfect’ hosue with every room just how youw ant it, but boy could things be a LOT worse.

i do appreciate all the advice i’ve received here…now and in the past. one thing for sure, the next time i think about a hoem pruchase, i’m coming here and i amgoing to listen to what i hear. there are some very SMART “in the know” people on this site.

[23109VC]

you are SO right about USAA. One of the HUGE reasons why I am VERY reluctant to go the “stop paying” and just try to screw USAA is b/c they are such a good company, and I want to be a loyal customer. Most banks are just pricks…they just want to screw you, they play games with you..I moved ALL my banking and insurance to USAA b/c they have been so good. I am not military, but got into USAA b/c a relative was. USAA is the BEST insurance company I have ever dealth with. they are honest, they bend over backward to be nice to you..and it pains me to think that screwing them might be the best financial route to take.

in an era where most customers have no loyalty to their banks…and I honestly don’t care about any of the other banks I’ve had b/c I KNOW they didn’t care about me… USAA does honestly seem to care. while they aren’t giving me a free lunch on my second…they are VERY good to me on my other policies…and part of me knows that if I have to sswithc my life ins, car ins, etc..I likely will pay at least a couple hundred more a month to get similar quality service..which might just offeset any real gain my dumping the second.

boht my wife and I agree on this.

we will likley just suck up the deal USAA recently offered us to temporarily adjust our second. which saves us another $150/month.

overall, with this final concession, my monthly nut for a 1900 sq ft home in a nice part of Temeecula is about $2500. i’ll have to do the math, but my guess is i save roughly 500/month on taxes by owning vs renting. i’ll update in this thread if I find that my math is way off.

that means I”m paying 2000/month actual costs…which is what it would cost to rent this home. and i don’t have the hassle of worrying that some landlord will stop paying and i’ll be forced to move.

both my wife and I have discussed that very real possibility shoudl we opt to walk and go the route of renting..and neither of us wants to dealt with that. with small kids…moving is even more of a PITA than it already is.

we have some plans to convert half the garage into a playroom. not anyting $$ like walls,flooring. i’m talking about maybe some upgraded storage so anyting unsafe like chemicals and yard tools are out of reach..and then putting in some sof rubber mats and hooking up the spare TV. kids can have all their toys out there…in so cal the garage is never too hot or cold… our oldest boy is actually excited about the idea of abunk bed and the two boys can share their room.

we have 3…not four kids. 2 boys one girl. teh boys can share. little princess gets her eown room. everyting else is perfectly fine.

it is aggravating to see people get bigger hosues for less. soemtiems I wish i had been one of “them” and bought that 750k house in temecula..but i was one of the people that inteiontally only bought what i was comfortable affording..rather than biting off more than i coudl chew..and now it pisses me off to see the idiots who bought 750k houses on income less than mine..get gov’t bailouts to keep their fancy homes. i’m struggling to fit in mine and make my payemtn after some work furloughs..and the ding dongs that just did an option arm and bought 10x what they shoudl ahve, get to stay. it’s not right.

oh well. i can’t complain too much. i always try to look on the bright side. i have a great family, a good job. everyone is healthy. i have a pretty wife. a few nice cars. i’m not rich, but i know people who are doing way worse or have had really hard times or really difficult circumstances land in their lap. one family member recently got cancer…he would gladly trade any house for just his health…. so in the BIG scheme of life…i’ve got it pretty good and i’m really jsut bickering over peripheral things that don’t really mean a lot. it’s nice to have the “perfect’ hosue with every room just how youw ant it, but boy could things be a LOT worse.

i do appreciate all the advice i’ve received here…now and in the past. one thing for sure, the next time i think about a hoem pruchase, i’m coming here and i amgoing to listen to what i hear. there are some very SMART “in the know” people on this site.

[23109VC]

you are SO right about USAA. One of the HUGE reasons why I am VERY reluctant to go the “stop paying” and just try to screw USAA is b/c they are such a good company, and I want to be a loyal customer. Most banks are just pricks…they just want to screw you, they play games with you..I moved ALL my banking and insurance to USAA b/c they have been so good. I am not military, but got into USAA b/c a relative was. USAA is the BEST insurance company I have ever dealth with. they are honest, they bend over backward to be nice to you..and it pains me to think that screwing them might be the best financial route to take.

in an era where most customers have no loyalty to their banks…and I honestly don’t care about any of the other banks I’ve had b/c I KNOW they didn’t care about me… USAA does honestly seem to care. while they aren’t giving me a free lunch on my second…they are VERY good to me on my other policies…and part of me knows that if I have to sswithc my life ins, car ins, etc..I likely will pay at least a couple hundred more a month to get similar quality service..which might just offeset any real gain my dumping the second.

boht my wife and I agree on this.

we will likley just suck up the deal USAA recently offered us to temporarily adjust our second. which saves us another $150/month.

overall, with this final concession, my monthly nut for a 1900 sq ft home in a nice part of Temeecula is about $2500. i’ll have to do the math, but my guess is i save roughly 500/month on taxes by owning vs renting. i’ll update in this thread if I find that my math is way off.

that means I”m paying 2000/month actual costs…which is what it would cost to rent this home. and i don’t have the hassle of worrying that some landlord will stop paying and i’ll be forced to move.

both my wife and I have discussed that very real possibility shoudl we opt to walk and go the route of renting..and neither of us wants to dealt with that. with small kids…moving is even more of a PITA than it already is.

we have some plans to convert half the garage into a playroom. not anyting $$ like walls,flooring. i’m talking about maybe some upgraded storage so anyting unsafe like chemicals and yard tools are out of reach..and then putting in some sof rubber mats and hooking up the spare TV. kids can have all their toys out there…in so cal the garage is never too hot or cold… our oldest boy is actually excited about the idea of abunk bed and the two boys can share their room.

we have 3…not four kids. 2 boys one girl. teh boys can share. little princess gets her eown room. everyting else is perfectly fine.

it is aggravating to see people get bigger hosues for less. soemtiems I wish i had been one of “them” and bought that 750k house in temecula..but i was one of the people that inteiontally only bought what i was comfortable affording..rather than biting off more than i coudl chew..and now it pisses me off to see the idiots who bought 750k houses on income less than mine..get gov’t bailouts to keep their fancy homes. i’m struggling to fit in mine and make my payemtn after some work furloughs..and the ding dongs that just did an option arm and bought 10x what they shoudl ahve, get to stay. it’s not right.

oh well. i can’t complain too much. i always try to look on the bright side. i have a great family, a good job. everyone is healthy. i have a pretty wife. a few nice cars. i’m not rich, but i know people who are doing way worse or have had really hard times or really difficult circumstances land in their lap. one family member recently got cancer…he would gladly trade any house for just his health…. so in the BIG scheme of life…i’ve got it pretty good and i’m really jsut bickering over peripheral things that don’t really mean a lot. it’s nice to have the “perfect’ hosue with every room just how youw ant it, but boy could things be a LOT worse.

i do appreciate all the advice i’ve received here…now and in the past. one thing for sure, the next time i think about a hoem pruchase, i’m coming here and i amgoing to listen to what i hear. there are some very SMART “in the know” people on this site.

[23109VC]

wow… even more great ideas.

First – the person who suggested I could just stop paying on the second…. I have been advised that by someone else. I did a loan mod that got my first loan modded successfully, but the bank that holds my second refused to budge. After recently taking a salary reduction at my job, and forwarding THAT documentation to my second, they agreed to drpo the rate on my second from 7.8% to 4% but only for a year. so they offered me what amounts to a $150 drop in monthly payments..

the first agreed to a reduction down to 4.8% permanently.

the bank that holds my second claimed they took no TARP money and don’t have to do any gov’t programs, and that is all they coudl do. I very articulately and politely – explained what you already mentioned – that given the current value of my home, the second mortgage is worthless. they can’t foreclose..and they would effectively get nothing if i stop paying.

I have my car insurance, home owners insurance, life insurance – and banking all trhough this company. USAA. they told me if I stop paying, and go the “discharge” route they will cancel all my policies. i’d have to get car ins, etc somewhere else.. not sure if they can really can my life ins as i have that as a 15 year contract..unless buried in that contract somwhere is a cluase that says they can terminate me for not keeping ohter USAA accounts in good standing…

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.

i hate to think that I would just walk on my 2nd, but it almost seems like that might be the wisest thing to do. my first + taxes is only $2000, which with my tax writeoff, would mean I’d be living in my house for less than it would cost to rent it…

[23109VC]

wow… even more great ideas.

First – the person who suggested I could just stop paying on the second…. I have been advised that by someone else. I did a loan mod that got my first loan modded successfully, but the bank that holds my second refused to budge. After recently taking a salary reduction at my job, and forwarding THAT documentation to my second, they agreed to drpo the rate on my second from 7.8% to 4% but only for a year. so they offered me what amounts to a $150 drop in monthly payments..

the first agreed to a reduction down to 4.8% permanently.

the bank that holds my second claimed they took no TARP money and don’t have to do any gov’t programs, and that is all they coudl do. I very articulately and politely – explained what you already mentioned – that given the current value of my home, the second mortgage is worthless. they can’t foreclose..and they would effectively get nothing if i stop paying.

I have my car insurance, home owners insurance, life insurance – and banking all trhough this company. USAA. they told me if I stop paying, and go the “discharge” route they will cancel all my policies. i’d have to get car ins, etc somewhere else.. not sure if they can really can my life ins as i have that as a 15 year contract..unless buried in that contract somwhere is a cluase that says they can terminate me for not keeping ohter USAA accounts in good standing…

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.

i hate to think that I would just walk on my 2nd, but it almost seems like that might be the wisest thing to do. my first + taxes is only $2000, which with my tax writeoff, would mean I’d be living in my house for less than it would cost to rent it…

[23109VC]

wow… even more great ideas.

First – the person who suggested I could just stop paying on the second…. I have been advised that by someone else. I did a loan mod that got my first loan modded successfully, but the bank that holds my second refused to budge. After recently taking a salary reduction at my job, and forwarding THAT documentation to my second, they agreed to drpo the rate on my second from 7.8% to 4% but only for a year. so they offered me what amounts to a $150 drop in monthly payments..

the first agreed to a reduction down to 4.8% permanently.

the bank that holds my second claimed they took no TARP money and don’t have to do any gov’t programs, and that is all they coudl do. I very articulately and politely – explained what you already mentioned – that given the current value of my home, the second mortgage is worthless. they can’t foreclose..and they would effectively get nothing if i stop paying.

I have my car insurance, home owners insurance, life insurance – and banking all trhough this company. USAA. they told me if I stop paying, and go the “discharge” route they will cancel all my policies. i’d have to get car ins, etc somewhere else.. not sure if they can really can my life ins as i have that as a 15 year contract..unless buried in that contract somwhere is a cluase that says they can terminate me for not keeping ohter USAA accounts in good standing…

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.

i hate to think that I would just walk on my 2nd, but it almost seems like that might be the wisest thing to do. my first + taxes is only $2000, which with my tax writeoff, would mean I’d be living in my house for less than it would cost to rent it…

[23109VC]

wow… even more great ideas.

First – the person who suggested I could just stop paying on the second…. I have been advised that by someone else. I did a loan mod that got my first loan modded successfully, but the bank that holds my second refused to budge. After recently taking a salary reduction at my job, and forwarding THAT documentation to my second, they agreed to drpo the rate on my second from 7.8% to 4% but only for a year. so they offered me what amounts to a $150 drop in monthly payments..

the first agreed to a reduction down to 4.8% permanently.

the bank that holds my second claimed they took no TARP money and don’t have to do any gov’t programs, and that is all they coudl do. I very articulately and politely – explained what you already mentioned – that given the current value of my home, the second mortgage is worthless. they can’t foreclose..and they would effectively get nothing if i stop paying.

I have my car insurance, home owners insurance, life insurance – and banking all trhough this company. USAA. they told me if I stop paying, and go the “discharge” route they will cancel all my policies. i’d have to get car ins, etc somewhere else.. not sure if they can really can my life ins as i have that as a 15 year contract..unless buried in that contract somwhere is a cluase that says they can terminate me for not keeping ohter USAA accounts in good standing…

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.

i hate to think that I would just walk on my 2nd, but it almost seems like that might be the wisest thing to do. my first + taxes is only $2000, which with my tax writeoff, would mean I’d be living in my house for less than it would cost to rent it…

[23109VC]

wow… even more great ideas.

First – the person who suggested I could just stop paying on the second…. I have been advised that by someone else. I did a loan mod that got my first loan modded successfully, but the bank that holds my second refused to budge. After recently taking a salary reduction at my job, and forwarding THAT documentation to my second, they agreed to drpo the rate on my second from 7.8% to 4% but only for a year. so they offered me what amounts to a $150 drop in monthly payments..

the first agreed to a reduction down to 4.8% permanently.

the bank that holds my second claimed they took no TARP money and don’t have to do any gov’t programs, and that is all they coudl do. I very articulately and politely – explained what you already mentioned – that given the current value of my home, the second mortgage is worthless. they can’t foreclose..and they would effectively get nothing if i stop paying.

I have my car insurance, home owners insurance, life insurance – and banking all trhough this company. USAA. they told me if I stop paying, and go the “discharge” route they will cancel all my policies. i’d have to get car ins, etc somewhere else.. not sure if they can really can my life ins as i have that as a 15 year contract..unless buried in that contract somwhere is a cluase that says they can terminate me for not keeping ohter USAA accounts in good standing…

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.

i hate to think that I would just walk on my 2nd, but it almost seems like that might be the wisest thing to do. my first + taxes is only $2000, which with my tax writeoff, would mean I’d be living in my house for less than it would cost to rent it…

[23109VC]

thanks for all the comments! I had no idea I’d get so much info so quickly.

As to whether this house is really acceptable for our long term needs – yes and no. Right now our two boys are doubled up and our daughter has her own room. Honestly, it’s not that bad from my perspective, but my wife is adamant that the house is too small. happy wife – happy life. 🙂 I agree, 1900 sq ft is not a small house, but when my wife sees/knows people who all have 3000+ sq ft homes, it makes this one seem small from a relative perspective. I”ve gone round and round with her on the pros/cons. a bigger house is more to heat/cool/clean/etc… but she likes the idea of having m ore “rooms” so that each kid gets their own room, a dedicated playroom, etc etc. by all means, it’s not that we NEED a new house, it’s more that she wants a new house.

another factor I cite to not want to leave is that we scored a nice home and we did a handful of sweat equity and $$ upgrades to make this one nicer. I did the epoxy garage floor myself..painted my finished off garage, installed tons of garage storage – overhead shelving and wall shelving. expense wise it was only maybe $500 for the shelving, but it was a lot of effort to put in. we also put in a really nice $2000 closet system…the former owner who was a flipper and tried to sell, but couldn’t.. upgraded with shutters all the way around the ouse, nice flooring, and a totally done backyard…so overall, the house is very very nice. compared to the house I grew up in, it’s far nicer. compared to the rest of the mcmansions here in temecula, i’d say it’s slightly nicer than average…there are piles of homes here in Temecula / Murrieta with granite, nice cabinets, great flooring, bbq pits in the backyard, etc.

one thing I know for sure – most of the “nice” homes in Tem/Murr were built in the last few years…and my wife would NOT be happy in one ofhte “older” homes in Temecula..given that most of those are “old” in the sense that they lack a lot of the nicer upgrades and niceties.

I do not think my loan mod converted my loan from non-recourse to recourse. i specifically made sure of that when I signed onto it.

my big question now is this:

my first and second mortgage, pllus insurance, comes out to about $2500. i pay another $100 for homeowners insurance. so figure i spend $2500-2600 per month to cover this house.

from a tax scenario – making about $120k/year… how much am I really saving per month/year on taxes by owning vs. renting? that gives me an idea as to how much my house effectively is costing me per month and I can make a direct comparison tow hat it would then cost to rent. if I’m saving $400/month, then I know what I will have to come up with to make up the difference if i go to rent..

essentially, if I pay $2500/month to “buy” this house, I can’t go out and rent a house for $2500 and expect it to cost the same…becuase come tax time, I will be owing uncle Sam a lot of money since I lost/gave up the home interest deduction.

it may be that by dumping my house, and losing the tax savings, that whatver i can rent is no better than what I have right now…resulting in a net loss…

i’m with many of you…my current situation may not be ideal, but hey, it coudl be worse. i’ve got a nice house,, it’s just not “perfect” from my wife’s perspective..but it sure as heck isn’t bad. 🙂 i’m in a nice location, 5 minutes from where i work, with a nice yard, private location, and a lot of upgrades. the ONLY negative is the lack of space.

my solution tot hat, is to put one car outside and convert half our garage to the playroom. i’ve already epoxied the floors..jjust add some cheap flooring, carpet remnant or the rubber mats that section together…and you have a playroom for almost no cost. 🙂

thanks again for hte ideas/suggestions.

[23109VC]

thanks for all the comments! I had no idea I’d get so much info so quickly.

As to whether this house is really acceptable for our long term needs – yes and no. Right now our two boys are doubled up and our daughter has her own room. Honestly, it’s not that bad from my perspective, but my wife is adamant that the house is too small. happy wife – happy life. 🙂 I agree, 1900 sq ft is not a small house, but when my wife sees/knows people who all have 3000+ sq ft homes, it makes this one seem small from a relative perspective. I”ve gone round and round with her on the pros/cons. a bigger house is more to heat/cool/clean/etc… but she likes the idea of having m ore “rooms” so that each kid gets their own room, a dedicated playroom, etc etc. by all means, it’s not that we NEED a new house, it’s more that she wants a new house.

another factor I cite to not want to leave is that we scored a nice home and we did a handful of sweat equity and $$ upgrades to make this one nicer. I did the epoxy garage floor myself..painted my finished off garage, installed tons of garage storage – overhead shelving and wall shelving. expense wise it was only maybe $500 for the shelving, but it was a lot of effort to put in. we also put in a really nice $2000 closet system…the former owner who was a flipper and tried to sell, but couldn’t.. upgraded with shutters all the way around the ouse, nice flooring, and a totally done backyard…so overall, the house is very very nice. compared to the house I grew up in, it’s far nicer. compared to the rest of the mcmansions here in temecula, i’d say it’s slightly nicer than average…there are piles of homes here in Temecula / Murrieta with granite, nice cabinets, great flooring, bbq pits in the backyard, etc.

one thing I know for sure – most of the “nice” homes in Tem/Murr were built in the last few years…and my wife would NOT be happy in one ofhte “older” homes in Temecula..given that most of those are “old” in the sense that they lack a lot of the nicer upgrades and niceties.

I do not think my loan mod converted my loan from non-recourse to recourse. i specifically made sure of that when I signed onto it.

my big question now is this:

my first and second mortgage, pllus insurance, comes out to about $2500. i pay another $100 for homeowners insurance. so figure i spend $2500-2600 per month to cover this house.

from a tax scenario – making about $120k/year… how much am I really saving per month/year on taxes by owning vs. renting? that gives me an idea as to how much my house effectively is costing me per month and I can make a direct comparison tow hat it would then cost to rent. if I’m saving $400/month, then I know what I will have to come up with to make up the difference if i go to rent..

essentially, if I pay $2500/month to “buy” this house, I can’t go out and rent a house for $2500 and expect it to cost the same…becuase come tax time, I will be owing uncle Sam a lot of money since I lost/gave up the home interest deduction.

it may be that by dumping my house, and losing the tax savings, that whatver i can rent is no better than what I have right now…resulting in a net loss…

i’m with many of you…my current situation may not be ideal, but hey, it coudl be worse. i’ve got a nice house,, it’s just not “perfect” from my wife’s perspective..but it sure as heck isn’t bad. 🙂 i’m in a nice location, 5 minutes from where i work, with a nice yard, private location, and a lot of upgrades. the ONLY negative is the lack of space.

my solution tot hat, is to put one car outside and convert half our garage to the playroom. i’ve already epoxied the floors..jjust add some cheap flooring, carpet remnant or the rubber mats that section together…and you have a playroom for almost no cost. 🙂

thanks again for hte ideas/suggestions.

[23109VC]

thanks for all the comments! I had no idea I’d get so much info so quickly.

As to whether this house is really acceptable for our long term needs – yes and no. Right now our two boys are doubled up and our daughter has her own room. Honestly, it’s not that bad from my perspective, but my wife is adamant that the house is too small. happy wife – happy life. 🙂 I agree, 1900 sq ft is not a small house, but when my wife sees/knows people who all have 3000+ sq ft homes, it makes this one seem small from a relative perspective. I”ve gone round and round with her on the pros/cons. a bigger house is more to heat/cool/clean/etc… but she likes the idea of having m ore “rooms” so that each kid gets their own room, a dedicated playroom, etc etc. by all means, it’s not that we NEED a new house, it’s more that she wants a new house.

another factor I cite to not want to leave is that we scored a nice home and we did a handful of sweat equity and $$ upgrades to make this one nicer. I did the epoxy garage floor myself..painted my finished off garage, installed tons of garage storage – overhead shelving and wall shelving. expense wise it was only maybe $500 for the shelving, but it was a lot of effort to put in. we also put in a really nice $2000 closet system…the former owner who was a flipper and tried to sell, but couldn’t.. upgraded with shutters all the way around the ouse, nice flooring, and a totally done backyard…so overall, the house is very very nice. compared to the house I grew up in, it’s far nicer. compared to the rest of the mcmansions here in temecula, i’d say it’s slightly nicer than average…there are piles of homes here in Temecula / Murrieta with granite, nice cabinets, great flooring, bbq pits in the backyard, etc.

one thing I know for sure – most of the “nice” homes in Tem/Murr were built in the last few years…and my wife would NOT be happy in one ofhte “older” homes in Temecula..given that most of those are “old” in the sense that they lack a lot of the nicer upgrades and niceties.

I do not think my loan mod converted my loan from non-recourse to recourse. i specifically made sure of that when I signed onto it.

my big question now is this:

my first and second mortgage, pllus insurance, comes out to about $2500. i pay another $100 for homeowners insurance. so figure i spend $2500-2600 per month to cover this house.

from a tax scenario – making about $120k/year… how much am I really saving per month/year on taxes by owning vs. renting? that gives me an idea as to how much my house effectively is costing me per month and I can make a direct comparison tow hat it would then cost to rent. if I’m saving $400/month, then I know what I will have to come up with to make up the difference if i go to rent..

essentially, if I pay $2500/month to “buy” this house, I can’t go out and rent a house for $2500 and expect it to cost the same…becuase come tax time, I will be owing uncle Sam a lot of money since I lost/gave up the home interest deduction.

it may be that by dumping my house, and losing the tax savings, that whatver i can rent is no better than what I have right now…resulting in a net loss…

i’m with many of you…my current situation may not be ideal, but hey, it coudl be worse. i’ve got a nice house,, it’s just not “perfect” from my wife’s perspective..but it sure as heck isn’t bad. 🙂 i’m in a nice location, 5 minutes from where i work, with a nice yard, private location, and a lot of upgrades. the ONLY negative is the lack of space.

my solution tot hat, is to put one car outside and convert half our garage to the playroom. i’ve already epoxied the floors..jjust add some cheap flooring, carpet remnant or the rubber mats that section together…and you have a playroom for almost no cost. 🙂

thanks again for hte ideas/suggestions.

[23109VC]

thanks for all the comments! I had no idea I’d get so much info so quickly.

As to whether this house is really acceptable for our long term needs – yes and no. Right now our two boys are doubled up and our daughter has her own room. Honestly, it’s not that bad from my perspective, but my wife is adamant that the house is too small. happy wife – happy life. 🙂 I agree, 1900 sq ft is not a small house, but when my wife sees/knows people who all have 3000+ sq ft homes, it makes this one seem small from a relative perspective. I”ve gone round and round with her on the pros/cons. a bigger house is more to heat/cool/clean/etc… but she likes the idea of having m ore “rooms” so that each kid gets their own room, a dedicated playroom, etc etc. by all means, it’s not that we NEED a new house, it’s more that she wants a new house.

another factor I cite to not want to leave is that we scored a nice home and we did a handful of sweat equity and $$ upgrades to make this one nicer. I did the epoxy garage floor myself..painted my finished off garage, installed tons of garage storage – overhead shelving and wall shelving. expense wise it was only maybe $500 for the shelving, but it was a lot of effort to put in. we also put in a really nice $2000 closet system…the former owner who was a flipper and tried to sell, but couldn’t.. upgraded with shutters all the way around the ouse, nice flooring, and a totally done backyard…so overall, the house is very very nice. compared to the house I grew up in, it’s far nicer. compared to the rest of the mcmansions here in temecula, i’d say it’s slightly nicer than average…there are piles of homes here in Temecula / Murrieta with granite, nice cabinets, great flooring, bbq pits in the backyard, etc.

one thing I know for sure – most of the “nice” homes in Tem/Murr were built in the last few years…and my wife would NOT be happy in one ofhte “older” homes in Temecula..given that most of those are “old” in the sense that they lack a lot of the nicer upgrades and niceties.

I do not think my loan mod converted my loan from non-recourse to recourse. i specifically made sure of that when I signed onto it.

my big question now is this:

my first and second mortgage, pllus insurance, comes out to about $2500. i pay another $100 for homeowners insurance. so figure i spend $2500-2600 per month to cover this house.

from a tax scenario – making about $120k/year… how much am I really saving per month/year on taxes by owning vs. renting? that gives me an idea as to how much my house effectively is costing me per month and I can make a direct comparison tow hat it would then cost to rent. if I’m saving $400/month, then I know what I will have to come up with to make up the difference if i go to rent..

essentially, if I pay $2500/month to “buy” this house, I can’t go out and rent a house for $2500 and expect it to cost the same…becuase come tax time, I will be owing uncle Sam a lot of money since I lost/gave up the home interest deduction.

it may be that by dumping my house, and losing the tax savings, that whatver i can rent is no better than what I have right now…resulting in a net loss…

i’m with many of you…my current situation may not be ideal, but hey, it coudl be worse. i’ve got a nice house,, it’s just not “perfect” from my wife’s perspective..but it sure as heck isn’t bad. 🙂 i’m in a nice location, 5 minutes from where i work, with a nice yard, private location, and a lot of upgrades. the ONLY negative is the lack of space.

my solution tot hat, is to put one car outside and convert half our garage to the playroom. i’ve already epoxied the floors..jjust add some cheap flooring, carpet remnant or the rubber mats that section together…and you have a playroom for almost no cost. 🙂

thanks again for hte ideas/suggestions.

[23109VC]

thanks for all the comments! I had no idea I’d get so much info so quickly.

As to whether this house is really acceptable for our long term needs – yes and no. Right now our two boys are doubled up and our daughter has her own room. Honestly, it’s not that bad from my perspective, but my wife is adamant that the house is too small. happy wife – happy life. 🙂 I agree, 1900 sq ft is not a small house, but when my wife sees/knows people who all have 3000+ sq ft homes, it makes this one seem small from a relative perspective. I”ve gone round and round with her on the pros/cons. a bigger house is more to heat/cool/clean/etc… but she likes the idea of having m ore “rooms” so that each kid gets their own room, a dedicated playroom, etc etc. by all means, it’s not that we NEED a new house, it’s more that she wants a new house.

another factor I cite to not want to leave is that we scored a nice home and we did a handful of sweat equity and $$ upgrades to make this one nicer. I did the epoxy garage floor myself..painted my finished off garage, installed tons of garage storage – overhead shelving and wall shelving. expense wise it was only maybe $500 for the shelving, but it was a lot of effort to put in. we also put in a really nice $2000 closet system…the former owner who was a flipper and tried to sell, but couldn’t.. upgraded with shutters all the way around the ouse, nice flooring, and a totally done backyard…so overall, the house is very very nice. compared to the house I grew up in, it’s far nicer. compared to the rest of the mcmansions here in temecula, i’d say it’s slightly nicer than average…there are piles of homes here in Temecula / Murrieta with granite, nice cabinets, great flooring, bbq pits in the backyard, etc.

one thing I know for sure – most of the “nice” homes in Tem/Murr were built in the last few years…and my wife would NOT be happy in one ofhte “older” homes in Temecula..given that most of those are “old” in the sense that they lack a lot of the nicer upgrades and niceties.

I do not think my loan mod converted my loan from non-recourse to recourse. i specifically made sure of that when I signed onto it.

my big question now is this:

my first and second mortgage, pllus insurance, comes out to about $2500. i pay another $100 for homeowners insurance. so figure i spend $2500-2600 per month to cover this house.

from a tax scenario – making about $120k/year… how much am I really saving per month/year on taxes by owning vs. renting? that gives me an idea as to how much my house effectively is costing me per month and I can make a direct comparison tow hat it would then cost to rent. if I’m saving $400/month, then I know what I will have to come up with to make up the difference if i go to rent..

essentially, if I pay $2500/month to “buy” this house, I can’t go out and rent a house for $2500 and expect it to cost the same…becuase come tax time, I will be owing uncle Sam a lot of money since I lost/gave up the home interest deduction.

it may be that by dumping my house, and losing the tax savings, that whatver i can rent is no better than what I have right now…resulting in a net loss…

i’m with many of you…my current situation may not be ideal, but hey, it coudl be worse. i’ve got a nice house,, it’s just not “perfect” from my wife’s perspective..but it sure as heck isn’t bad. 🙂 i’m in a nice location, 5 minutes from where i work, with a nice yard, private location, and a lot of upgrades. the ONLY negative is the lack of space.

my solution tot hat, is to put one car outside and convert half our garage to the playroom. i’ve already epoxied the floors..jjust add some cheap flooring, carpet remnant or the rubber mats that section together…and you have a playroom for almost no cost. 🙂

thanks again for hte ideas/suggestions.

[23109VC]

I actually brought it up with my parents but not to benefit ME but to benefit my younger sister. she and her husband are teachers and make enough to afford a modest house payment, but not enough to qualify for a home in this market. they are renting right now.

i brought it up thinking that my parents could buy a house for THEM and then either “rent to own” or carry paper, or work out some arrangement where my sister and her husband pay my parents. my parents want to retire – and this would give them a vehicle to invest money in and get a monthly cash flow coming in. the big risk, however, would be if my sister or her husband lost their teaching jobs and could not afford to pay – then they’d have to kick them out.

i am in a house, and initially was thinking of this to benefit my sister. my parents are “thinking” about it. i honestly think they like the idea but are simply nervious about such a big investment that is not the “Norm”. they are conservative, and they may see it as too risky.

once I started thinking about it – I thought, if they would do it for sis – woudl they do it for me. i don’t NEED to move. yeah, i am a guy who bought in temecula a couple years ago and should have listened to all of you and NOT bought but i did. oh well. i like my house – it is nice, not as big as I would like for the long haul – but it is nice. if i am in my house for the next decade i am NOT going to be unhappy. but call me an opportunist, call me greedy – call it what you will -b ut if an opportunity came along to “upgrade” why not? so i thought, why not let my house go into foreclosure and take advantage of the fact that prices are so low.. i could just walk on my house and rent for a while. if my credit gets screwed b/d of a foreclosure i wouldn’t qualify for a new loan if/when I decided we hit bottom and wante to buy again…BUT if a relative was willing to buy the house who has cash – they could cut the loan to me and carry the note and i pay them. no real banks involved, mom and dad would just act like the bank.

the $500k figure is way high. i just tossed that out as a rond number. i’d probably look at stuff in the 300-400 range max. my current house is nice, i like it, and probably only worth $200-250 in THIS current market at best…

on the surface it sounded like a possible win-win – but not bieng a financial expert (hey i bought when i shoudl have sat out – so I am not an expert) I thought i’d ask some here who have essentially proven to be “in the know” and see what some of you thikn about the idea.

i really like a lot of the info I obtained. i hadn’t even really considred the whole long term health care costs, etc. i do know my parents have long term care insurance – but i don’t know the specifics of their policies.

another idea I threw out to them – and this also has a win-win angle to it that coudl help and have it’s own set of issues – i suggested they rent out their primary residence and move in with me – or in the alternative, we each move into another house together that is large enough to hold the bunch of us. i could dump my house and we could just rent a 4000 sq ft home and all live togther. my upside is having them in the house – i would have access to day car for my kidsd – NO not every day…but once a week or something – they are there and it woudl be much easier. upside – my kids get to spend a lot more quality time with gandma /grandpa. we are all very close and visit one a week or so – so living together might actually work – but with any co-living arrangment there are negatives to that. you can get annoyed with people you love once you live together…

big houses here in temecula that would house us all woudl easily rent for $3000? not that much. i could pay the bulk of it on my own – and they could move in and pay NO rent or only nomical costs. then they could pocket ALL the rent off their Scripps Ranch home – which is virtually paid off and worth about $600k – they coudl probably rent it for 2500-3000??? that woudl give them anice extra streamof income… but they woudl have to combine households…

if they did get sick or hurt – or were disabled, they would likely be able to live in the house longer – as they woudl have me, my wife, etc to assist them – unless they were so disabled htey required professional care…but as they age..and getinto their late 70s and 80s and assuming tey are inddependent, but just need minor “help” they would be in the same house and it would be easier to help them.

that was another idea i threw out as a way to help them retire earlier and cut costs. combine households… that would surely save money as they could rent their existing homeand profit off it.

back to my original idea – i hae another relative who is insanely wealthy. insanely. she is nto the kind of person to give money away and I would never ask her for money – she wouldn’t just “give” me a half million – but if I came up with a full blwon contract, and it was “legit” and there was some benefit to her – either that the interste she woudl earn would be equal to or better than her other investments and she was sufficiently protected from the obvious contingencies – she might just loan me the money. she has money coming out of the woodwork.. literally millions. that is alway san avenue..but it would need to be worke dout by an independent lawyer/third party so that it was above board, legit and very business like.

thanks again for the suggestions. my main goal is to help my parents. they have this money sitting in an account gaining no interest and they don’t know what to do iwth it. they are not financially sophisticated. they have thought about giving it to one of those investment firms where you basically give them your oney and they invest it and ge ta cut of the profits…but in this market – who knows if even the ‘experts” know WTF they are doing and there are no gaurantees..they could lose it all doing that..

which is why i thoght somethign like this would have the money in someting tangible. like a house. the only real worry is that what if we aren’t even at bottom yet and prices fall another 25% or 50%…. buying a house in Temecula now for $300k… coudl THAT house be $150k in another couple years? who knows..it could… then you’ve pissed away a lot of money…

too bad i don’t have a crystal ball… 🙂

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