[djrobsd]

For the record “Cashing out a 401k” is not an option the IRS affords us here in America. There are severe penalties for doing so, and you see pennies on the dollar when it’s all said and done. Also for the record, I haven’t put any money into my 401k since I bought the house, I shifted all my investment dollars into the house which was obviously a bad investment, and an important lesson has been learned here. Even if I did cash out my 401k, that would only delay the pain another 3-6 months, and wouldn’t make that much difference at the end of the day.

A home is a HOME not an INVESTMENT. The mistake I made was I got caught into the buy now mentality that millions of other Americans got caught into back in 2004 when the real estate market was sky rocketing, and even though I was perfectly content in my $1500 a month luxury apartment with a pool, jacuzzi, work out room, and all the amenities, I couldn’t resist the evil temptation of “Sweet equity”. Had I thought of it apples to apples between the apartment and the house I bought, I would have taken the apartment any day of the week both for lack of having to do any maintenance and for all the on-site amenities that a gated new apartment community affords. And my loan officer and my realtor were coaching me all the way along making statements like “I know this payment will adjust in 3 years, but the market is so hot you’ll be able to sell or refinance before then”… Yep, we’ve heard all this before.

I made the mistake, and so now I have to live with it. Can you blame me for at least trying to work with my lender and trying to keep the house instead of just walking away from it and making it someone else’s problem? I’m trying to do other people who are also struggling a favor and sharing my experience with them so they know what they’re up against if they decide to try to do the same thing. I didn’t have to spend my time posting on here but I did so as a service to others. Sometimes I wonder if all you folks on here that say throw in the keys are the same ones that go buy these properties at real estate auctions!

[djrobsd]

For the record “Cashing out a 401k” is not an option the IRS affords us here in America. There are severe penalties for doing so, and you see pennies on the dollar when it’s all said and done. Also for the record, I haven’t put any money into my 401k since I bought the house, I shifted all my investment dollars into the house which was obviously a bad investment, and an important lesson has been learned here. Even if I did cash out my 401k, that would only delay the pain another 3-6 months, and wouldn’t make that much difference at the end of the day.

A home is a HOME not an INVESTMENT. The mistake I made was I got caught into the buy now mentality that millions of other Americans got caught into back in 2004 when the real estate market was sky rocketing, and even though I was perfectly content in my $1500 a month luxury apartment with a pool, jacuzzi, work out room, and all the amenities, I couldn’t resist the evil temptation of “Sweet equity”. Had I thought of it apples to apples between the apartment and the house I bought, I would have taken the apartment any day of the week both for lack of having to do any maintenance and for all the on-site amenities that a gated new apartment community affords. And my loan officer and my realtor were coaching me all the way along making statements like “I know this payment will adjust in 3 years, but the market is so hot you’ll be able to sell or refinance before then”… Yep, we’ve heard all this before.

I made the mistake, and so now I have to live with it. Can you blame me for at least trying to work with my lender and trying to keep the house instead of just walking away from it and making it someone else’s problem? I’m trying to do other people who are also struggling a favor and sharing my experience with them so they know what they’re up against if they decide to try to do the same thing. I didn’t have to spend my time posting on here but I did so as a service to others. Sometimes I wonder if all you folks on here that say throw in the keys are the same ones that go buy these properties at real estate auctions!

[djrobsd]

My payment has gone up on my 2nd mortgage $300 and now the first mortgage w/ GMAC has gone up $610, my credit card debts have also substantially increased making repairs and improvements to the property, when I purchased the property my credit card payments were $0, and now they are $450 a month! My income has not kept pace with the increased payments.

One could say I don’t know how to manage my money, and I’m sure there are plenty of you who will jump on that, but the truth is at least 75% of that credit card debt was used to improve or repair the property, including a $5000 plumbing disaster that occurred earlier this year.

[djrobsd]

My payment has gone up on my 2nd mortgage $300 and now the first mortgage w/ GMAC has gone up $610, my credit card debts have also substantially increased making repairs and improvements to the property, when I purchased the property my credit card payments were $0, and now they are $450 a month! My income has not kept pace with the increased payments.

One could say I don’t know how to manage my money, and I’m sure there are plenty of you who will jump on that, but the truth is at least 75% of that credit card debt was used to improve or repair the property, including a $5000 plumbing disaster that occurred earlier this year.

[djrobsd]

My payment has gone up on my 2nd mortgage $300 and now the first mortgage w/ GMAC has gone up $610, my credit card debts have also substantially increased making repairs and improvements to the property, when I purchased the property my credit card payments were $0, and now they are $450 a month! My income has not kept pace with the increased payments.

One could say I don’t know how to manage my money, and I’m sure there are plenty of you who will jump on that, but the truth is at least 75% of that credit card debt was used to improve or repair the property, including a $5000 plumbing disaster that occurred earlier this year.

[djrobsd]

My payment has gone up on my 2nd mortgage $300 and now the first mortgage w/ GMAC has gone up $610, my credit card debts have also substantially increased making repairs and improvements to the property, when I purchased the property my credit card payments were $0, and now they are $450 a month! My income has not kept pace with the increased payments.

One could say I don’t know how to manage my money, and I’m sure there are plenty of you who will jump on that, but the truth is at least 75% of that credit card debt was used to improve or repair the property, including a $5000 plumbing disaster that occurred earlier this year.

[djrobsd]

Smart move Ray, I’ve been considering the same. My 401k is up like 18% this year, and I would hate to see it go the other way, so I might just have to do the same, sit on the sidelines for a while until things cool down, and then move the money back to agressive growth again. 😉

[djrobsd]

Smart move Ray, I’ve been considering the same. My 401k is up like 18% this year, and I would hate to see it go the other way, so I might just have to do the same, sit on the sidelines for a while until things cool down, and then move the money back to agressive growth again. 😉

[djrobsd]

Smart move Ray, I’ve been considering the same. My 401k is up like 18% this year, and I would hate to see it go the other way, so I might just have to do the same, sit on the sidelines for a while until things cool down, and then move the money back to agressive growth again. 😉

[djrobsd]

Smart move Ray, I’ve been considering the same. My 401k is up like 18% this year, and I would hate to see it go the other way, so I might just have to do the same, sit on the sidelines for a while until things cool down, and then move the money back to agressive growth again. 😉

[djrobsd]

You’re a smart man LostCat, and I commend you for your discipline. Stay that way. I agree, with the other poster, see if you can find a good private school to put your kids in, and call it day! The problem with moving to a “rich” area like that to get good schools, is you and your kids will get caught in the trap… Do you really want to live around a bunch of spoiled rich peeps? Nothing against those who live there, but I’ve DJ’d several parties for the kids in that neighborhood, and their parents spoil them rotten, and if you’re not able to do the same for your kids, you will ultimately hate the decision you made.

[djrobsd]

You’re a smart man LostCat, and I commend you for your discipline. Stay that way. I agree, with the other poster, see if you can find a good private school to put your kids in, and call it day! The problem with moving to a “rich” area like that to get good schools, is you and your kids will get caught in the trap… Do you really want to live around a bunch of spoiled rich peeps? Nothing against those who live there, but I’ve DJ’d several parties for the kids in that neighborhood, and their parents spoil them rotten, and if you’re not able to do the same for your kids, you will ultimately hate the decision you made.

[djrobsd]

You’re a smart man LostCat, and I commend you for your discipline. Stay that way. I agree, with the other poster, see if you can find a good private school to put your kids in, and call it day! The problem with moving to a “rich” area like that to get good schools, is you and your kids will get caught in the trap… Do you really want to live around a bunch of spoiled rich peeps? Nothing against those who live there, but I’ve DJ’d several parties for the kids in that neighborhood, and their parents spoil them rotten, and if you’re not able to do the same for your kids, you will ultimately hate the decision you made.

[djrobsd]

You’re a smart man LostCat, and I commend you for your discipline. Stay that way. I agree, with the other poster, see if you can find a good private school to put your kids in, and call it day! The problem with moving to a “rich” area like that to get good schools, is you and your kids will get caught in the trap… Do you really want to live around a bunch of spoiled rich peeps? Nothing against those who live there, but I’ve DJ’d several parties for the kids in that neighborhood, and their parents spoil them rotten, and if you’re not able to do the same for your kids, you will ultimately hate the decision you made.

[djrobsd]

Landscaping is expensive!!! Our condo complex has a small courtyard in the center, and a patch of grass in the front, and it cost us $12,000 to re-landscape for automatic sprinklers, the palm trees and plants, and the night time plant lights. We got about 14 trees, agepanthas, lillys, and a bunch of those pittosporum(sp?) bushes you see everywhere in CA… That and some of that really cool myoporum ground cover. Landscaping is over-priced… And landscapers rip people off, charging you $400 for a tree you can buy at Home Depot for $100. Oh wait, you’re paying them $300 to plant the tree and make sure it doesn’t die! WTFE.

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