Friday, May 23, 2008

Help! I don't want to go bankrupt!

So a little background information -

I am a single woman living in the midwest who has found herself with a mortgage she can't pay. It isn't what you might think - I am not a victim of the credit disaster that has happened to many of my fellow Americans. Although, frankly, I could have been. I had an ARM loan. (Adjustable Rate Mortgage = A Bad Idea.) I also had a NINA loan. (No Income No Asset Loan aka a "Liars Loan." Also = A Bad Idea.*) But my problem doesn't result from either of these. My problem stems from a much older problem... divorce.

When my ex and I split, the verbal agreement between us was that he would take the "marital home." (That's what the lawyer calls it and somehow the name has stuck in my head.) Unfortunately for me, this was at the dying end of the "we give mortgages to anyone!" boom and because of his credit score and the size of the mortgage, he was unable to get a loan to get the home refinanced. When the dust settled and the lawyer was done, we agreed to put the home up for sale. Not too terribly surprisingly, it has not been purchased. What happens now is that my ex makes the June payment. He will be in the home until June 15th or so, at which point I take over.

Now all this is just backstory and I am going to work really hard not to cast stones at my ex or drag him through the mud. That is not what this blog is about. This blog is about me moving back into the marital home and finding a way to pay for it that doesn't involve illegal activities, starvation or working two forty hour jobs and going insane. My goal is to find ways through increasing my income, decreasing my expenses and using the assets I have to make each monthly payment.

So how much more do I need each month?


This blog is going to be my journal into making it happen. I keep reading articles out there about "lowering your expenses by $500 a month" and they all say the exact same things - many of which don't apply to me. What I want to do is put this down so I can track my successes and my failures. Maybe along the way someone else might read this and get some ideas for themselves. Maybe they will be warned about things that don't work. Yesterday I sat down with a legal pad and made a huge list of things I can work on to get $900 a month. Some are small like fixing my bike so I can save on gas, some are things I really, really don't want to do, like borrowing from mom.

So, let's see how I do, shall we? Coming up with $900 more a month can't be too hard, can it?


*Surprisingly though, the NINA actually worked out for me, more or less. I have a pretty low interest rate on a 30 year fixed.

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