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Lost My Job This Week
Vanity | 07/04/2012 | Ron

Posted on 07/04/2012 5:40:54 AM PDT by Free America52

Lost my job this week which comes on top of 4 years of putting kids to college, etc. Cash funds are depleted and I am seriously considering something I never thought - doing a strategic foreclosure on my house, cashing in IRA / 401(k) funds and paying cash for a smaller house. Just curious about everyone's thoughts?


TOPICS: Miscellaneous
KEYWORDS: foreclosure; unemployment
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1 posted on 07/04/2012 5:40:55 AM PDT by Free America52
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To: Free America52

Wow, sorry to hear about this!

Will be praying for you, a fellow FReeper, in this time of need.

As for financial advice, I’m not really qualified to give it...


2 posted on 07/04/2012 5:44:30 AM PDT by Yashcheritsiy (not voting for the lesser of two evils)
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To: Free America52

You lose a LOT when you cash in the 401K/Retirement funds. Talk with a lawyer and an accountant before you take such steps. Sorry about the job.


3 posted on 07/04/2012 5:44:52 AM PDT by theDentist (FYBO/FUBO; qwerty ergo typo : i type, therefore i misspelll)
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To: Free America52

Well, first of all, cut all unnecessary expenses TODAY.

Not tomorrow. TODAY.

I would recommend purchasing emergency food and water supplies. Just in case.

I wouldn’t cash in the 401’s just yet. But that’s me.


4 posted on 07/04/2012 5:45:20 AM PDT by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: Free America52

I think paying off a house is a smart move.


5 posted on 07/04/2012 5:45:28 AM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: Free America52

How about drawing unemployment and looking for another job first? Sounds to me like you are going straight to the nuclear option.


6 posted on 07/04/2012 5:46:08 AM PDT by GenXteacher (You have chosen dishonor to avoid war; you shall have war also.)
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To: Free America52

Prayers. Times are terrible. My business is dead dead dead. Zero phone calls lately. Double the work for half the pay.


7 posted on 07/04/2012 5:46:08 AM PDT by GlockThe Vote (The Obama Adminstration: 2nd wave of attacks on America after 9/11)
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To: Free America52

have you looked for other employment??? my wife was out of work for a while then boom! she got two big offers the same week....

hang in there as long as you can before foreclosure and depleting your retirement savings...any chance of selling your house??? short sale??


8 posted on 07/04/2012 5:46:48 AM PDT by God luvs America (63.5million pay no federal income tax then vote demoKrat)
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To: theDentist

Never give up,never give in!

A close friend who was laid off at 65 just got hired - months later- in a better job.

Good luck, and prayers for you and the family.


9 posted on 07/04/2012 5:47:51 AM PDT by Da Coyote
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To: Free America52
You are smart to consider all your options. However don't choose the most drastic action as you described so early on. TTake a week off catch your breath.
10 posted on 07/04/2012 5:52:47 AM PDT by JIM O
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To: Free America52

NOT a financial genius here, but I hear people call in to Dave Ramsay all the time with questions like this. He knows what he’s talking about and is able to walk them through the tangles. Might be worth a try. What I hear is - usually there is a better way to do it than the person has thought of.


11 posted on 07/04/2012 5:54:07 AM PDT by bboop (Without justice, what else is the State but a great band of robbers? St. Augustine)
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To: Free America52

I feel bad for you man. Don’t know what to tell you.

Houses are depressedright now in most places and arent selling well. Cashing in the 401 might not be a good idea.
If you pay off a house it does not end. You still have taxes maintenance,and other expenses.

Still if the house is dragging you down it may have to go.

I wish you all the luck in th world and hope you find new employment. God Bless You man.


12 posted on 07/04/2012 5:55:44 AM PDT by Venturer
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To: Free America52

If you are younger than 59, the greedy government will take its chunk out of your savings if you withdraw them, so look for other ways to get by.

Cut your cable, phone, and any other frivolous expenses. (Watch free over-the-air-TV if you must have it, and buy a Trac Phone with prepaid cards.) Increase the deductible on your car and home insurance. Use restaurant coupons and clip food coupons from your Sunday paper to stretch your money. Look up money saving tips online, and you will find many more tips from others in Obama’s vast army of unemployed.

Tell everyone you know that you need a job and will take anything for now. Now is not the time to be proud.

Jesus invites you, “Call upon Me in the day of trouble. I will deliver you, and you will glorify Me.” We will add you to our prayer list.


13 posted on 07/04/2012 5:56:42 AM PDT by txrefugee
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To: Free America52
Dave Ramsey would say to concentrate on Food, Clothing and Shelter in that order.

You'll need money for food, think Food Stamps, Unemployment funds and contact your local church and/or local government for whatever is available (food, cheese, etc.).

Clothing same as above.

As for Shelter, Mortgage companies take a very long time to get around to it. Concentrate on keeping Electricity, Water and Phone going. A free cell phone may be available so think of ditching your expensive home phone.

Attend Networking course at your Unemployment office ASAP. Networking is the key to your next job. Educational funds may be available and attending courses in or near your field can help keep your sanity.

Been there with you.

SR

14 posted on 07/04/2012 5:56:42 AM PDT by sr4402
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To: Free America52

If you are over 50, consult an attorney with experience in age discrimination law. File a claim for unemployment insurance tomorrow when the state office opens. Network with friends in your industry or related business to find out about openings.
Economize, but don’t ravage your retirement plan or make any radical moves with your home.


15 posted on 07/04/2012 5:56:53 AM PDT by Eric in the Ozarks
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To: Free America52

Don’t buy, rent. Just take out enough from your 401K on Dec 31 to pay the the rent each year. Also, RENT FIRST. Because when you walk away from the mortgage your credit rating goes to crap.


16 posted on 07/04/2012 5:57:32 AM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: Eric in the Ozarks

To everyone, thanks for your comments and thoughts. I am 56, have risen from nothing to comfortable middle class and now it is disappearing before my eyes. And I have other friends who are also in similar situations. Whoever thought we would see this type of environment in our lifetime?


17 posted on 07/04/2012 6:00:25 AM PDT by Free America52 (The White guys are getting pissed off. We beat Hitler Hirohito and Krushchev. Obama will be easy.)
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To: Free America52

Might consider other options before touching those 401Ks. My brother did that and he just got hammered with taxes. Now he’s trying to finance paying for those taxes.

You’re entitled to unemployment. Use it. It’s a messed up economy.

Good luck and hope you find something soon.


18 posted on 07/04/2012 6:01:30 AM PDT by HarleyD
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To: Free America52

I got laid off in 2009 and sold my house, got a new job, with a better living location, etc.

I’ll be praying for you. It can be done.


19 posted on 07/04/2012 6:01:38 AM PDT by struggle (http://killthegovernment.wordpress.com/)
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To: GenXteacher

When I was laid off after 40 years and 26 years with the last company, I got a severance package. Earlier that year the company changed the rules to force me to go on unemployment get the “transition benefit”. I was reluctant to go on unemployment, having never done so, but I wasn’t going to give up my package. Do what you have to do. Go for the unemployment and use the tools that come with it to find a job that replaces the income you had. Good luck!

Note - my layoff was Gulf Oil Spill related and a direct result of that little swim that Obama photo-op’d in Pensacola bay. It was done to send a message to the Coast Guard to get the Oil Spill off the front page, they cancelled our contract, and I was laid off.


20 posted on 07/04/2012 6:03:35 AM PDT by OrioleFan (Republicans believe every day is July 4th, Democrats believe every day is April 15th.)
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To: Free America52

I’ve been there.


21 posted on 07/04/2012 6:04:30 AM PDT by Eric in the Ozarks
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To: Free America52

Note to OP: If you go Chpt. 13, retirement savings does not count as ‘assets’. They are protected.


22 posted on 07/04/2012 6:05:23 AM PDT by firebasecody (Orthodoxy, proclaiming the Truth since AD 33)
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To: cripplecreek

Find a job close to home. A different house may not be the best option if it isn’t in good condition. See Mike Holmes before signing.
http://www.hgtv.com/mike-holmes/bio/index.html
http://www.mikeholmesinspections.com/


23 posted on 07/04/2012 6:07:14 AM PDT by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
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To: Free America52
I too am sorry this situation has befallen you and yours. There is Great advice (imho) on your thread. May God hold you and yours in His Hands. Tough times come and go. God will carry those who go to Him. It will still be tough, though God cares. Good Luck FRiend. Will be in prayer for you and yours.
24 posted on 07/04/2012 6:08:22 AM PDT by no-to-illegals (Please God, Protect and Bless Our Men and Women in Uniform with Victory. Amen.)
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To: GlockThe Vote

hear...hear...., I know the feeling my friend.


25 posted on 07/04/2012 6:10:04 AM PDT by swampfox101
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To: Free America52
paying cash for a smaller house

Generally, rates are low -- 4% range.

I would not cash in savings funds for that. Check your savings funds rates. Your savings account(s) may be earning more than the current home loan rates.

I have an IRA. When I took it out 15 years ago, it had a rider that the minimum rate it would ever pay is 4%. At the time, normal-low rates were in the 8% range. Ironically, it is now my highest interest rate earner.

About 4 years ago, I moved some cash from a money market to 4% CDs. When those CDs matured, they renewed at 2%. At the next renewal they were at 1%.

==


26 posted on 07/04/2012 6:16:05 AM PDT by TomGuy
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To: Free America52

Sorry, FRee America52...yet another Preezy O victim...

Cash in your assets, buy bartering goods, metals, tobbacco, whiskey or pure grain alcohol....time to go Galt.

With this lawless administration, and nobody on “The Hill” willing to hold them to account, it is time to go Galt.

I might be assuming too much, as we are not aquianted...if you can tap your 401 to maintain status quo until January 20, 2013, do so.


27 posted on 07/04/2012 6:16:04 AM PDT by SgtBob (Freedom is not for the faint of heart. Semper Fi!)
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To: GlockThe Vote

Very common situation in Obummers aMeriKa.


28 posted on 07/04/2012 6:23:19 AM PDT by ncfool (OMG 2012)
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To: Free America52
This is just my take on this, but if you're at the point where you're seriously considering foreclosure or cashing out 401(k)/IRA funds, then you probably shouldn't even be considering a purchase of another home. Even for cash. Especially for cash.

As you are finding out, your home is a very illiquid asset that isn't easily sold to generate the funds you may need for other things. If I were in your position I would sell the home outright and rent for a while with the proceeds of the sale before even thinking of cashing out the retirement accounts.

Most important of all ... you need to slow down, step back, get advice from people who know a lot about these things, and think carefully before doing anything that could have serious unknown tax consequences later.

29 posted on 07/04/2012 6:25:48 AM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
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To: Free America52

What kind of leasing market do you have in your area? Depending of how much you are underwater on your current home it might be make sense to lease your current home if the lease would cover much of the current mortgage payment rather than defaulting. Next step might be to rent rather than buy a smaller place while looking for another job.Do you want to exhaust all your emergency reserve in the IRA in an all cash purchase of another home? The longer you can retain your IRA as a emergency reserve while looking the better.


30 posted on 07/04/2012 6:27:22 AM PDT by chuckee
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To: Free America52

I’m just thankful for you that you did not lose your job at my age with my financial situation. Pay cash for a smaller house? I probably wouldn’t qualify for a small rental. I’m holding onto the home I’ve had for 25 years, just praying our corrupt politicians don’t tax me out of it. I’ll never live long enough to find another job.


31 posted on 07/04/2012 6:27:39 AM PDT by arrdon (Never underestimate the stupidity of the American voter.)
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To: Free America52

If you are not 59 1/2 you will be hit with a penalty.
Everything you take will be taxed as ordinary income, so you most likely will take a big hit there because you will be in a higher income bracket. Run the numbers.
Conceptually I like the idea.
Two years ago, I would have said “what foreclosure”, now. It might be a good idea.
God’s Speed. Think very carefully about your idea, every which way you can.


32 posted on 07/04/2012 6:27:55 AM PDT by svcw (If one living cell on another planet is life, why isn't it life in the womb?)
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To: TomGuy

If you have a good amount in retirement savings take a loan from it for four months of your problematic mortgage payment to give yourself so breathing room to access and network.

Cut expenses. Apply tomorrow at your companies two best competitors. You may be a fresh asset to them.

Do all the employment efforts you can compile. Take any offer that will keep the lights on. I have seen people turn down an offer as too low that months later they wish they had taken.

If you are upside down due to borrowing on the house that is a separate issue — treat it that way.

Best wishes.


33 posted on 07/04/2012 6:29:05 AM PDT by KC Burke (Plain Conservative opinions and common sense correction for thirteen years.)
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To: Free America52
Something else to think about ...

This is easy advice for me to give when I'm not in your situation, but if your kids are grown and you don't have a compelling reason to stay where you are I would advise you to be open to the possibility of relocating. There are places in this country where good workers are in high demand. Maybe you don't have the ideal skill set for some of these jobs, but your best assets are a good work ethic, flexibility, and a willingness to learn. A wise employer would covet someone with these attributes, regardless of the job in question.

34 posted on 07/04/2012 6:31:07 AM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
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To: Free America52

Sorry to hear it, FA52. But every cloud has some silver and you will find it; don’t lose heart.

Now about advice...even folks who emit advice incessantly, will not be able to tell you much without some details, which understandably you might not want to impart on a discussion forum where we enjoy anonymity.
So my advice will be general and limited.

If your kids are grown and flown, you may have too much house there. Is the mortgage substantial? With unemployment insurance, would it be in the budget? You might want to think about downsizing, even in a bad market. Strategic foreclosure, as you phrased it, can get complicated. First order of business would be to talk to an attorney and then the lender, explore lower payment options, refi, and the acceptability of various other avenues, like renting out the house and moving to another, whether purchase or rental.

Just to be on the safe side, the first thing I’d probably do in the situation: find a house in foreclosure, or a decent house going to sheriff’s sale, and buy it for cash while you still have some lying around. It is your safety net and you may one day need a safety-net house. Owner-financed homes and sheriff’s sales are out there.
You can pick up a good home for $2k or less. It won’t be the prettiest in the litter, but you must regard it as a temporary thing, a stepping stone.

And remember, when you meet with your lender, the very last thing they want is your house. They will negotiate if at all possible, and it usually is.

All is not lost. You have experience, assets, and your family. You are in very good shape, when you think about it. Don’t let this rattle you and weaken your assets or your family ties.

Cut your expenses right now. Can you live without the tv? Lower the insurance payment on the car? Live with fewer cars? It’s amazing what you can save by chatting with your insurance agent about the legal minimum of car insurance. :)

You should also talk to the local tax office and see if, given your age and income, you qualify for a discount on your property taxes. In some areas, if you’re not employed, there are some taxes you don’t pay, or pay much less.

Finally, look for a job. Any job. You never, never know what’s behind a door, and what seems like a lowly job, a bitter comedown, may actually increase your overall happiness and contentment. I’ve known people who started driving a cab or delivering pizza, and found it preferable to the career they left. Others take part time jobs and discover they can live very well on part time income.

What seems a catastrophe now, may turn out to be a blessing. The two are easily confused.

Finally, God’s got your back. Don’t forget to thank Him!

LL


35 posted on 07/04/2012 6:47:18 AM PDT by Lady Lucky (If you believe what you're saying, quit making taxable income. Starve the beast.)
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To: Free America52

Just remember that your mortgage is your strongest tax-lowering mechanism. Talk to your tax preparer about the implications of your plans. Also, if I may say so, the only way to make real money is to go into business for yourself. If you have a skill and the time to knock on doors and make cold calls, you have a job.


36 posted on 07/04/2012 6:51:40 AM PDT by golux
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To: Free America52

Instead of selling your home, what about renting it out and you rent something cheaper yourself until things work out? Someone I know did that, eventually found a job again and was able to afford to move back into their home. Worked out for them because the value of the property had increased greatly over time. Not sure how that would shake out with your situation and this economy, but just another option to consider. Particularly if you don’t really want to lose that home.


37 posted on 07/04/2012 6:51:55 AM PDT by Ladysmith (The evil that's happening in this country is the cancer of socialism...It kills the human spirit.)
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To: Free America52
In 3 1/2 years (age 59 1/2), you won't have to pay the 10% penalty on withdrawal of 401K savings.

If your only serious debt is your mortgage, you shouldn't have to seek bankruptcy protection.

You are wise to consider, now, going through a short sale or deed in lieu with your mortgagee bank. If you no longer need a house the size you own, why keep paying for it.

Restructuring your lifestyle is not in lieu of looking for a new job, it gives you peace of mind which allows you to concentrate on moving on.

Congratulations on getting your child her education. It will serve her well in life, as well as your example of bearing up through thick and thin.


38 posted on 07/04/2012 6:52:49 AM PDT by kenavi (Obama doesn't hate private equity. He wants to be it with our money.)
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To: Free America52

Prayers


39 posted on 07/04/2012 6:53:38 AM PDT by Coldwater Creek (He who dwells in the shelter of the Most High will rest in the shadow of the Almighty Psalm 91:)
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To: Alberta's Child

“f your kids are grown and you don’t have a compelling reason to stay where you are I would advise you to be open to the possibility of relocating. “

Very good advice. Pessimism is your enemy. Avoid it as best you can.

I would also think about whether or not your personal beliefs and politics are known where you work and may have played a role. Stranger things have happened. If this is a possibility, you might want to look into legal options, but this is a long and painful road.


40 posted on 07/04/2012 6:57:45 AM PDT by pieceofthepuzzle
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To: Free America52; GenXteacher
How about drawing unemployment and looking for another job first? Sounds to me like you are going straight to the nuclear option.

I agree. Things are bad right about now, but you have some options. Exhaust them before doing anything drastic. Prayers up.

41 posted on 07/04/2012 7:03:13 AM PDT by TwelveOfTwenty (With choices like Palin, Cain, and Bachmann, what could go wrong? Now we know.)
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To: Venturer
Please, You need to see a bankruptcy lawyer before you do any thing and it should be free for the first meeting. Please, Please, do this first.

One thing you have have to is not pay the mortgage, but don't move out. I'm in real estate and and I have seen people live in there house for 2 years without the bank setting up the court date but of course every state is different. People were able to put a lot money away before they actually had to get out of their house.

You may be able to get your mortgage monthly payment reduced by going this route.(bankruptcy)

The private sector has been hit so much more than public sector, we need to do what is best as long as it is legal to get though obama’s economy.

42 posted on 07/04/2012 7:04:14 AM PDT by factmart
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To: Free America52
First and foremost, I'm assuming you've filed for, and will receive unemployment benefits. Even if you believe that the company fired you for cause, there is no reason not to apply, and no Freeper should feel embarrassed to collect back some of the money they've paid in through a lifetime of hard work. But everyone should always remember: Unemployment is taxable income - pay attention to your new tax bracket and know that they're not taking out any money for taxes from that money.

Now, as to the question: Since such a drastic measure comes with a lot of penalties - the foreclosure affecting credit report, the 401k cash out creating a big tax liability - the use of such a tool should be justified by a much better future outlook. Are you moving to where there are jobs? Lower property taxes? Lower cost of living?

If you are just shifting sideways in your present location and there's not a lot of great jobs available, then you're probably going to get into a lot of financial trouble for not a lot of gain.

I'm taking some random guesses here - you're somewhere near the Tech Triangle, but likely 45-50 minutes of commute away. Probably at least two cars, probably a large house with at least two extra bedrooms, and the house is probably 20 years old. A whole lot of neighbors are banks already. You're looking at the big picture, and downsizing the family home is probably at the top of the chart as your biggest expense.

But with little cash assets, it sounds like you should first go through your family expenses and cut out a whole lot of extra expenses - for a lot of families, there's a big number of hundred dollar expenses each month, and that can quickly add up to a house payment.

1) Notify your mortgage company about the change in your income. Ask for any assistance information they might have - some companies have a grace program that lets you skip a couple payments without penalty, etc.

2) Do not bother with public assistance yet - most programs work on what you earned in the previous quarter, not what you're earning now.

3) Pull out your most recent bank statements, credit card statements - take a red pen, and mark every vampire charge on that statement - Monthly phone bills - Do you need three phones? A MagicJack can replace a home phone. Downgrade handsets and drop data plans. Return cable/dish equipment. Remove kids from car insurance. Cancel gym memberships, end subscriptions. I'm going to guess that by the time you're done, you'll find out you've spent more each month on various charges, fees, and subscriptions than you pay for your house. Had a friend realize recently that he was paying Netflix, Hulu, a full cable bill, etc to just watch the over the air broadcast sports broadcast each week. Handle the yard work yourself rather than paying someone else, etc.

Once you've your expenses under some restraint, start networking with people you know - former clients, friends, family, coworkers, former coworkers - get it out there that you're looking for a job. If you're tech savvy, get it out there that you'd be willing to handle small tech jobs - fixing that blinking 1200, hooking up that TV, etc. If you're willing to relocate, make sure people know that too.

43 posted on 07/04/2012 7:11:33 AM PDT by kingu (Everything starts with slashing the size and scope of the federal government.)
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To: Free America52

My sympathies to you and your situation. I can only offer sincere, positive thoughts to send your way and lots of prayers. God Bless.


44 posted on 07/04/2012 7:12:32 AM PDT by Daffynition (Our forefathers would be shooting by now.)
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To: Free America52
I want to stress that you can have a lot of money and equity today and and have still use bankruptcy. There are different chapters you may be able to use.

See a bankruptcy attorney

45 posted on 07/04/2012 7:12:51 AM PDT by factmart
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To: Free America52
I want to stress that you can have a lot of money and equity today and still use bankruptcy. There are different chapters you may be able to use.

See a bankruptcy attorney

46 posted on 07/04/2012 7:14:01 AM PDT by factmart
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To: Free America52

I was in your shoes 2 years ago. It took me 6 months to find a new position. I did a multitude of things. There isn’t necessarily one right answer.

1) Take the unemployment - you paid for it - use it. This can lead to a frame of mind - why should I pick up a lower paying job than the unemployment! Been there - thought that- very depressing to acquire Welfare Mentality so quickly! However, your real issue is “Cash Flow.” Also - ANY income can REALLY screw this up. I was technically “on furlough” from my original employer, so I had health coverage still ( a god send!) but the state law where my company is located required them to pay me for holidays! 1 day of pay wiped out my income from unemployment for the week AND got them thinking I was working again! Took 2 weeks to get that straightened out without pay.

2) Selling the house in a depressed market MAY not solve your problems. Can you get enough from the house to give you a few years of cash flow and still have a roof over your head?

3) I wound up selling off Mutual funds I had purchased from an inheritance 30 years ago! This is much like your 401k answer without the negative tax implications for me. That is how I stayed a float and met my expenses without reducing standard of living. I’m not sure this was the brightest way to go. I’m now out about 30K in savings I use to have. It is what I did at the time. Vast reduction of expenses is a good idea.

4) Kids pay for their own college! That sounds heartless - but I have one in college right now! My Dad wound up going through a period like this when I was in college! It’s what got me independent! I paid for my last year 100% myself!

5) Internet sites like Dice, etc are only marginally helpful. I must have submitted 1000 applications in the 6 months I was unemployed. I did find out that you want to make your Resume searchable. That got me a few hits - directly sending your Resume to companies through websites doesn’t work at ALL. Work your contacts in your own industry, they are your best bet for re-employment. I got a contract job that was good for 2 months from one of the first people I contacted. He came through 5 months AFTER I talked to him! Then the searchable resume got me a couple of interviews, one of which got me my current position. Also - think about walking a paper copy of your resume in. That got me an interview. Finally - don’t expect to match every requirement in a job posting. If you are a 60% match they may look at you. The real trick is getting someone to really SEE your resume. Finally - the searchable resumes were found by “Head Hunters!” If I were to loose my position today, they would be the first guys I’d call.

6) Is there any line of business you can pursue out of your home, i.e. self-employed?

7) Age is a consideration. It ain’t legal, but it’s there. I shaved my gray beard off, and didn’t have anything in my Resume that gave away my age directly. I trimmed 15 years of experience off the resume too. Not telling any falsehoods -the experience wasn’t directly relevant to industry I now work in. Hiding your age in any way possible to get you in the door can help.


47 posted on 07/04/2012 7:22:04 AM PDT by fremont_steve
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To: Free America52

Sorry for your situation.

Instead of “strategic foreclosure”, have you considered simply walking into the bank and robbing them? If you get away with it, it won’t ruin your credit. It’s something to consider. Either way you would be stealing.


48 posted on 07/04/2012 7:27:22 AM PDT by Darth Reardon (No offense to drunken sailors)
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To: GenXteacher; Free America52
How about drawing unemployment and looking for another job first? Sounds to me like you are going straight to the nuclear option.

Exactly. No need to jump into the burning pit without first weighing your options. Give things time. Kids can get grants and scholarships or they can start paying a bit of their own way (McDonald's is hireing). Hang onto the 401K and the house. Cut everything thing you can NOW - magazine subscriptions, phone/cell extras, tv, don't eat out, stock pantry foods now while there is cash available. Call your credit cards and explain the situtation and ask for a lower interest if you have outstanding debt. Ask your auto insurance if you eliminate the "home to work" travel. Get the most important bills or monthly charges paid off NOW - all insurance payments (home, life, car), property taxes so they can't take your home later... yes, I know you said there is no money but take the $ that you can cut out and put it toward those important bills. If you don't pay your car insurance then you're subject to a fine if you're stopped and you're up the creek and can't go for job interviews if you have a wreck without insurance. Same with health insurance.

Then get your resume together and start looking for another job. Jobs are out there but many people think they're too high and mighty that they won't take a lower paying or lower prestige job. Don't be that guy.

49 posted on 07/04/2012 7:27:22 AM PDT by bgill
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To: firebasecody
If you go Chpt. 13, retirement savings does not count as ‘assets’. They are protected.

So is up to $40K in equity in your home. Depending on location, this may allow you to stay in your present home with minimal effort.

But, again, Chapter 13 is a nuclear option to be considered as a last resort. The very threat of playing that card suddenly makes some creditors more reasonable. But it takes only one jag-off to say no.

50 posted on 07/04/2012 7:30:24 AM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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