Ugh. Like most of the rest of America, the housing disaster is kicking my butt.
I currently owe the bank $100,000 more than my home is worth, so I can’t even refinance. I just learned that I reduced my taxes too much each month. I did that to be able to pay my high interest-only mortgage payments. So, I messed up. I owe about $7,000 in income taxes this year! Time to sell my furniture I guess.
I paid $17,943 on my interest only loan in 2007, plus $3,239 in property taxes, plus $2,700 home owners association dues, plus $870 for water, sewer and garbage. So, the total cost for owning a home in 2007 for me was $24,752. That comes out to $2,062 per month or $1,612/mo if I have renter paying $450/mo. I’ve already poured all of my savings into this money pit. There is nothing more. So, now I have to destroy my credit and go through a foreclosure unless they take my deed in lieu offer.
I’ll have bad credit for the next 7 to 10 years and I will probably owe taxes on debt forgiveness of $100,000 or I’ll have to pay back the $60,000 HELOC in payments over the next 5 years. It all kind of makes me want to vomit. But at least I know I’m not alone.
I have to plan my next moves carefully. Before I hurt my credit with a foreclosure, I should sell my 19-mpg luxury car and get a 100-mpg 2009 Toyota Prius, a bicycle, and a cheap apartment. I might get married and have children to improve my tax situation in 2008 as well.
The coming world energy crisis will require a lot of flexibility over the next 10 years.
I really like the above design better than this one, which I think is more likely to be the 2009 model. Or one of them anyway. I’d like the body shape above to come in a 100-mpg version for under $30,000.
Update: My local Toyota dealership says the 100-mpg Prius will be out in 2010 and will only get that mileage with a special add on kit a user could have installed after the purchase. Car salesmen lie like there’s no tomorrow in my experience, so this may just be the thing they say to keep selling the 2008 models. I was told the 2009 model will be the same as the 2008 with no body style or mileage improvements. Hmm…