Mr. Pug, age 50, is laid off in Silicon Valley. My job situation looks very secure. We’ve worked hard and bought a modest home a little ways away three years ago, and I love it and the area dearly. If worse comes to worse and he can never find a job again here, what in the world can we do to keep our home? We’ve some stock which has held its value comparatively well, but I was hoping to hold that against retirement. Is it more secure to put it into the home? I know that home ownership, mortgages, etc. have become far more complex nowadays, and I’m hoping there is some creative solution out there. I’m a dolt in this subject, and I’m hoping that some of you, any of you, know some secrets or solutions.
Well, I’m pretty much in the same situation as you. I was laid off in July, and haven’t had much luck finding anything. My parents made it through a lot of hard times by cashing out on the equity in their house almost every year–luckily for them it appreciated almost 300k over 10 years. I’m hoping that I’ll find something relatively soon, as I’m starting to get horribly bored as well as broke.
Same sitch here. Laid off in July, haven’t found anything yet. Thinking of cashing out and moving somewhere cheap, but of course finding a job someplace cheap would be even harder; that’s why they’re cheap…Of course, having the sniper running around is making me think about it even more…
To quote The Replacements: “I need a goddamn job!”
I feel for you, Pugluvr, being laid off is no fun. I’ve made this suggestion several times before, but has Mr. Pugluvr considerered applying to temporary help agencies? I’m sure he’s overqualified for any work they could get him, but it’s something to keep him current. Plus, many companies like to “test” temp help employees before offering them full-time employment. Just something to consider. I wish you all the best.
It could work to rent out a room. The local paper indicates the going rate, under “Share Rentals” as well as “Rooms for Rent”. Likely $300 to $550 a month cash. This is one thing that is ‘allowed’ by insurance companies, etc. First and foremost is the quality of the tenant. You can get a credit check run, check references, and take in your gut feeling.
Creative re-financing has potential traps. If you essentially pull your equity out as cash and live on that, worst case is, that runs out (or the Real Estate market wobbles) and suddenly you have negative money. The R.E. market is not guaranteed right now.
Yes, temp jobs if nothing else. Money coming in is Good.
Do you have family that would take a note, rather than re-financing through the cold market?
Then there is the plain re-fi for lower interest/lower payments.
(I’m in Silicon Valley too and we’re up for a layoff; but now 6 weeks everywhere I see indications that it’s picking up some: our orders; traffic; and the UPS guy says so too!)(And I think the Administration will pump the economy to dampen the criticism it’s getting. Criticize them some more, it’s good for us!)
Some states allow bankruptcies to retain a single piece of real estate type property as a place of residence. IIRC, FL is one of these. The law, I suppose, comes from the thought that it is not right to turn one into a homeless person intentionally and likely comes from the days when homes were very modest and basic. But some persons have used it to secure nice estates and then avoid paying debts that otherwise could have been satisfied.
Of course, I don’t know this first hand. My source is 60 Minutes, which as a CBS product should be taken cum granis salis.
Another thought, recently I have been offered three different “opportunities” that turned out to be multi-level-marketing.
This is exactly the kind of economic time that various fraudulent money-making enterprises pop up.
(MLM involves you selling a wonderful product, and it turns out that if you get others to join & sell it you get a good cut of their profit; it branches out just like a chain letter, it sounds good, and you get rooked.)
These are actually legal if they have a real product and follow certain rules, even though those who join get burned.
Normal employment is the route to go.
How do you keep your house through tough economic times?
Always pay the mortgage first and
Don’t buy a house that you can’t afford on only one salary, and/or
Save 3 months worth of living expenses for this situation, and/or
Be prepared to work more than one menial job until you find something more to your liking. If you’re in IT in southern California, this could be a long time.
pugluvr I feel your pain. Having lived out there for a while I know how hard it can be. And I moved back here to New England, you think competition is tough out there, huh! try coming here.
You and Mr.Pug are not out of solutions though. Other people on the boards have mentioned taking on a border. I sense that you have a modest home and are not willing to do this just yet. That is fair. Though have you ever thought about moving and keeping your house at the same time. Having equity, is a wonderful thing. Though a house is not an asset necessarily in my book, one can build a nice bit of equity with it and make a nice home into a great retirement down the road.
Pople ahve also mentioned refinancing. This is a good option only if the rates are down. And though you live in Silicon Valley I’d venture to say they probably are still pretty high. I am generalizing from what I know about the house Mrs.Phlosphr and I own in Phoenix. We bought that house when I landed the sweet job in Phoenix. Then two years later Mrs.Phlosphr landed a fellowship back in New England (where we’re from). So we up and moved and reluctantly did not sell our Phoenix house. We used it against a loan we took out on our current house.
There are tons of options for you guys. I’d go check out a free estimate financial planner and see what they say. Maybe go to five or six of them and take the best cross-sectional advice from all of them… Keep us posted!