Comments on: Handling Financial Setbacks http://www.fivecentnickel.com/2009/12/01/handling-financial-setbacks/ personal finance tips, tricks, and commentary Mon, 13 Feb 2012 01:36:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jen M. http://www.fivecentnickel.com/2009/12/01/handling-financial-setbacks/comment-page-1/#comment-136830 Jen M. Thu, 03 Dec 2009 18:03:24 +0000 http://www.fivecentnickel.com/?p=3680#comment-136830 Laura, I'm glad you have gotten some feedback. Fingers crossed that they will work with you, as it IS their fault! I've been stuck between two homes before, and it sucked a lot! Good luck! Laura, I’m glad you have gotten some feedback. Fingers crossed that they will work with you, as it IS their fault!

I’ve been stuck between two homes before, and it sucked a lot!

Good luck!

]]> By: John DeFlumeri jr http://www.fivecentnickel.com/2009/12/01/handling-financial-setbacks/comment-page-1/#comment-136746 John DeFlumeri jr Wed, 02 Dec 2009 01:36:47 +0000 http://www.fivecentnickel.com/?p=3680#comment-136746 Got in a housing jam, moved in with relatives, spread house contents into 6 or 7 basements, until it was solved. john DeFlumeri Jr Got in a housing jam, moved in with relatives, spread house contents into 6 or 7 basements, until it was solved.

john DeFlumeri Jr

]]> By: Laura http://www.fivecentnickel.com/2009/12/01/handling-financial-setbacks/comment-page-1/#comment-136741 Laura Wed, 02 Dec 2009 00:16:51 +0000 http://www.fivecentnickel.com/?p=3680#comment-136741 Thanks for the tips. We received a call this evening that seems to indicate they are willing to work with us. I'm not one for playing games, so I'm not holding my breath. Either way, we're making a final decision Thursday and just moving on. Thanks for the tips. We received a call this evening that seems to indicate they are willing to work with us. I’m not one for playing games, so I’m not holding my breath. Either way, we’re making a final decision Thursday and just moving on.

]]> By: keenie beanie http://www.fivecentnickel.com/2009/12/01/handling-financial-setbacks/comment-page-1/#comment-136733 keenie beanie Tue, 01 Dec 2009 20:15:23 +0000 http://www.fivecentnickel.com/?p=3680#comment-136733 It seems to me that, since you are looking at a maximum of 8 weeks on the exorbitant month-to-month rental rate, it could be better to do that rather than incur the expense of storage and moving AND walking away from any non-recoverable closing costs (inspections, appraisal, application fees, etc.) on the orginal house. Unless you really don't want that house now, it seems you'd be better off sitting tight and going through with the purchase in January. At the very least, be sure to quantify the cost of moving and abandoning the purchase and weigh it against the extra rent you pay if you stay put past December 1. It seems to me that, since you are looking at a maximum of 8 weeks on the exorbitant month-to-month rental rate, it could be better to do that rather than incur the expense of storage and moving AND walking away from any non-recoverable closing costs (inspections, appraisal, application fees, etc.) on the orginal house. Unless you really don’t want that house now, it seems you’d be better off sitting tight and going through with the purchase in January.

At the very least, be sure to quantify the cost of moving and abandoning the purchase and weigh it against the extra rent you pay if you stay put past December 1.

]]> By: almost there http://www.fivecentnickel.com/2009/12/01/handling-financial-setbacks/comment-page-1/#comment-136730 almost there Tue, 01 Dec 2009 19:25:54 +0000 http://www.fivecentnickel.com/?p=3680#comment-136730 There are the lower status motels that rent by the week or month. Wouldn't want to do really long term there but it will do in a pinch. There are the lower status motels that rent by the week or month. Wouldn’t want to do really long term there but it will do in a pinch.

]]> By: Dan http://www.fivecentnickel.com/2009/12/01/handling-financial-setbacks/comment-page-1/#comment-136728 Dan Tue, 01 Dec 2009 17:50:39 +0000 http://www.fivecentnickel.com/?p=3680#comment-136728 @Laura: Finding a short-term rental may be harder than you thing. Another option could be something like an Extended Stay of America hotel. @Marc: My last apartment (and current one too) both have a 60-day notice... and when I was job hunting (and expecting to move) there was no choice but to pay rent for two apartments for two months when I accepted my job. Sucked. It's simply a money-grab from apartments these days, and they know it. @Laura: Finding a short-term rental may be harder than you thing. Another option could be something like an Extended Stay of America hotel.

@Marc: My last apartment (and current one too) both have a 60-day notice… and when I was job hunting (and expecting to move) there was no choice but to pay rent for two apartments for two months when I accepted my job. Sucked. It’s simply a money-grab from apartments these days, and they know it.

]]> By: Marc http://www.fivecentnickel.com/2009/12/01/handling-financial-setbacks/comment-page-1/#comment-136727 Marc Tue, 01 Dec 2009 17:37:38 +0000 http://www.fivecentnickel.com/?p=3680#comment-136727 This might be one of those moments where lemons could be turned into lemonade. Though I'm sure there are other work and personal commitments that you might have there, this might be a time to take an adventure. Visit family for an extended period over the holidays. Take a roadtrip and stay with friends all over the place. If you look at the upside, you have everything that you own packed up and you are in a transition stage. As with changing jobs, this transition stage is where a lot of living can happen with limited barriers. I would suggest putting your stuff in a cheap storage locker and getting out some. On a side note, I hope that this post is a reminder to your readers that you can never be too cautious with life changes. I have been caught many times paying rent at more than one place or having no place at all because I didn't plan ahead. In your case, you probably should have planned ahead of time to have at least a month overlap between owning your house and renting. That way a move isn't rushed and you aren't buying paint supplies for a house you do not own yet. To those that might think that idea is not financially responsible and couldn't fit into a budget, I say that it is not a budgeted expense but one that you should save for. Like the home downpayment, the total costs of the move should have been saved for as well. Finally, what I have done in similar situations is go to my credit union and take out a low interest loan to cover expenses with a cushion in case more goes wrong. That way the financial risks during this time could be mitigated over a longer period of time as opposed to right now. Plus you can pay it down at your own pace. This might be one of those moments where lemons could be turned into lemonade.

Though I’m sure there are other work and personal commitments that you might have there, this might be a time to take an adventure. Visit family for an extended period over the holidays. Take a roadtrip and stay with friends all over the place.

If you look at the upside, you have everything that you own packed up and you are in a transition stage. As with changing jobs, this transition stage is where a lot of living can happen with limited barriers. I would suggest putting your stuff in a cheap storage locker and getting out some.

On a side note, I hope that this post is a reminder to your readers that you can never be too cautious with life changes. I have been caught many times paying rent at more than one place or having no place at all because I didn’t plan ahead. In your case, you probably should have planned ahead of time to have at least a month overlap between owning your house and renting. That way a move isn’t rushed and you aren’t buying paint supplies for a house you do not own yet.

To those that might think that idea is not financially responsible and couldn’t fit into a budget, I say that it is not a budgeted expense but one that you should save for. Like the home downpayment, the total costs of the move should have been saved for as well.

Finally, what I have done in similar situations is go to my credit union and take out a low interest loan to cover expenses with a cushion in case more goes wrong. That way the financial risks during this time could be mitigated over a longer period of time as opposed to right now. Plus you can pay it down at your own pace.

]]> By: Financial Samurai http://www.fivecentnickel.com/2009/12/01/handling-financial-setbacks/comment-page-1/#comment-136725 Financial Samurai Tue, 01 Dec 2009 14:40:49 +0000 http://www.fivecentnickel.com/?p=3680#comment-136725 Laura - Know that in the end, everything will work out for the best, and you will find an even better home! Why not pay your friends the amount you would have paid in rent to live? I'm sure first your friends wouldn't mind you guys crashing for a week, and they will probably decline your monetary aspect. Instead, INSIST on it, and they will oblige and feel that much better too. Best, Sam Laura – Know that in the end, everything will work out for the best, and you will find an even better home!

Why not pay your friends the amount you would have paid in rent to live? I’m sure first your friends wouldn’t mind you guys crashing for a week, and they will probably decline your monetary aspect. Instead, INSIST on it, and they will oblige and feel that much better too.

Best,

Sam

]]> By: Phanzy http://www.fivecentnickel.com/2009/12/01/handling-financial-setbacks/comment-page-1/#comment-136723 Phanzy Tue, 01 Dec 2009 13:47:47 +0000 http://www.fivecentnickel.com/?p=3680#comment-136723 Not sure where you guys live,perhaps you can look up some month to month rentals on craigslist? I'm in Atlanta and they have cheap housing in nice neighborhoods. Good luck! Not sure where you guys live,perhaps you can look up some month to month rentals on craigslist? I’m in Atlanta and they have cheap housing in nice neighborhoods. Good luck!

]]>