As you are aware (if you have read previous blogs), I have been only partially employed since July 2009. I have been ardently seeking a full-time position and have supplemented my income with temporary jobs. I usually don’t qualify for unemployment benefits because I am working part-time.
I have drastically cut back expenses. I have delayed repairing my automobile, procuring new glasses, fixing plumbing and other items. I have reduced expenditures to the bare minimum but I still run a slight deficit each month. As a result of this situation, my savings-checking account declines a couple hundred dollars each month.
This old house is my home. It is nearly 100 years old and reminds me of a farmhouse. I have worked on many projects to fix, update, and paint the home during the past seven and a half years. I like it here. My cats like it here. This is my home, however, I actually own only a portion of the property (less than a third) and I owe about $113,000. It is a modest home on a small city lot. Nothing fancy.
I lost my full-time job in December 2002, two months after I purchased the home. I worked at temporary jobs for 14 months until I was able to locate another full-time job. However, I am much more anxious regarding the Great Recession because of the lack of open positions. I have never been late with a payment (thank you automatic withdrawal and frugality). Before my income dropped, I would submit an extra $100 per month toward the principle balance.
Last month I met with a loan adjustor specialist (loss mitigation) from the bank which serves as the processor for my loan. He assured me that it would be easy to refinance since I have never been late and am proactive. I met with a home ownership coordinator (nonprofit agency) and she assured me of the same. However, I just learned that I have been turned down for a renegotiation since I am in deficit each month. DUH! That is why I want to reconfigure my loan so that I am not in deficit. I do not want to be in default.
I met with the home ownership coordinator, again. I have redone my budget to show that I am not in deficit, though I know it isn’t completely honest. I have reapplied and hope to procure the modification so that I can stay in my home. Unfortunately, modification will hurt my credit rating for a while and that concerns me since so many employers review the job candidate’s credit rating. It is a vicious cycle. Sorry to vent but this is an incredibly frustrating process. I feel exposed and vulnerable.
Bank: Let me stay, please.