This Thing We Call Recession...

As I was checking the blogs that I read daily, I came across a post that really struck home. It was a post about the recession and all the people that are affected. Usually I skip over posts like that, because I've been there first hand many times and don't really need to be reminded of how the economy is.
I've been a stat-at-home mom for most of the time that I've had kids. We agreed early on that if I wanted to work, I could, and if I didn't that was ok too. I've had a handful of jobs. I worked as a nurses aide when James was little. I worked as a temp, and then at McDonald's when Gabe was 2-4yrs on and off. We bought a house in 2002 when Gabe was about 1 1/2. The following summer, Mike quit his job of 9yrs for a better paying one. That lasted almost 2 months, just a few days shy of his probationary period being up, they canned him. Thankfully he qualified for unemployment.
It was a bad time for us, Caleb had just been diagnosed with autism the spring/summer before. We had just bought a house. If it hadn't been for the twins qualifying for SSI for their disabilities, we'd have gone under then for sure. He lost his job Aug 20, 2003. He didn't work again until Feb 12, 2006. 18 months. November of 2003 I started working full time at McD's to try and help us make bills. The kids' SSI wasn't enough to cover even most of the bills. It covered the mortgage, and sometimes the utilities and some of the groceries. It didn't cover gas, phone, clothes, or any of the other bills that were in collection. Unemployment was only bringing in about $180 a week. After gas and whatever little groceries, diapers, and odds and ends, there wasn't much of anything left. McD's was a paycheck of $200 every 2 weeks. It was a crappy job, but it was better than having nothing.
The day that he found out for sure that he would be working at Tyson, and when he would start, I QUIT! There was no way that we'd be able to cover day care for 3 special needs kids plus James for 3rd shift (both of us were going to be working 3rd), much less cover gas and everything we'd need for 2 jobs. Plus, his pay would be double mine, WEEKLY! The only really big problem now was that we had gotten so far behind on payments on all the bills that we had to catch up on them. We'd had to rob one bill to pay another quite a few times, trying to make sure that the mortgage was always paid first, and trying to make sure that it was paid in full. Juggling payments so that we didn't get the electric shut off, or the phone, or lose the van. We missed 1 payment on the mortgage, because of the van breaking down. So when we paid the next month, we included 1/2 the past due with it. And the next month, and the next. It became a vicious cycle, not being able to pay in full each month. And then the recession hit, which made it worse. The mortgage company wanted all the payment and all the late fees, NOW, instead of letting us work things out. In retrospect, it was a blessing in disguise. We really couldn't afford the house, nor did we have the money to fix it. The city was nailing us left and right for fines for not painting, needing a new roof, taxes not caught up, garage needing to be fixed. So we tried to give back (quit claim deed) the house. But they wouldn't let us. So we told them that we were moving out, come take the house (Oct-Nov of 2007), they waited till Jan of 2008 to file for foreclosure. It was final in May 2008. Our finances aren't a whole lot better, but they are getting there. The big thing that sucks is, even if they get better we still won't be able to get a house loan for at least 3 yrs from the final date of foreclosure.
I know this was pretty long winded, but all that aside, I want to tell anyone reading that it does get better. You will make it, just like we did. It may get tight, and you may have to go without some things, but it can be done. Make it an adventure, learn new things to do that don't cost money. Do local things and things that give back to the community. Most of all, be happy and content with who and what you have.
To read the post that got me thinking, go to http://badladies.blogspot.com/2009/05/no-money-changes-everything.html
I'm sure Catherine will be happy to hear from you!

Finally Getting Better!

Well the week didn't kill me. He had his meeting at work with the managers on Tuesday, and was informed on Thursday(a week after being walked out) that he had his job back. Friday we went and looked at a house in Hanover, rent to own, awesome house. It's a 3br 2 ba, ranch style house with an attached 1 car garage. And we go Monday to fill out apps for it. A good friend of ours is willing to co-sign on the loan, and will be living with us in the furnished part of the basement.
Adrian went home to his parents on the 24th, after 12 days of being here. They've decided to get back together, and are working on their problems together. He's doing good and will be 2 in a couple of weeks.
The other kids are doing well, same stuff different day. I'm really hoping that we get this place and can move their this summer. It's a really quiet neighborhood, small town and only 20 minutes outside of the city we live in now.
Hopefully more on that later this week.

Grrrrrr....Taxes

So we went to get our taxes done yesterday. That was fun...NOT! We give the tax guy the W-2's, the paper from unemployment, and our 1099-A from the mortgage company. All is going well, until---the tax guy looks at it and says "where did you get this?". He apparently has never seen one before, and doesn't know what to do with it! So he calls his boss over, and she doesn't know what to do with it either! They told us to come back today, that we could finish our taxes up then. But when we call, they say that they haven't figured it out yet, and the person that knows what to do won't be in until tomorrow.
What it boils down to is that they may count the principal amount that we owed as a gain, and the amount between what we owed and what it sold for as a loss. Makes no sense to me, but I also found out that the amounts from the 1099-C (and A) are supposed to be forgiven for 2007, 2008, and 2009. So we might not have to worry. Or, on the other hand, we might. Hard to say right now. Should hear back sometime after 9am tomorrow, so prayers would be appreciated.

So My Credit Sucks...

And now I have to figure out how to get it decent enough to qualify for a loan thru FHA. Their requirements say at least 3 yrs after a foreclosure, or 5 yrs after a bankruptcy. The question is, 3 yrs from when they filed, or 3 yrs from when it was final lol. I'm guessing from when it was final, which puts us at June/July of 2011. A little over 2yrs from now. So that gives me 2 yrs to clean up our credit and put aside a minimum of 3.5% of the price of whatever house we plan on getting, plus closing costs, and whatever little incidentals. We dont plan on spending more than $100,000 on a house, which means at least $3500 for downpayment, plus at least 3,000 for closing and extras, probably closer to $4000. Can I do this? Yes, I think I can.
And if we wait til we get taxes back in 2012, we'll have a little extra besides what we have put aside between now and then. Now I just need to figure our budget and start setting money aside where we can't mess this up.

Busy, random

Went to the library today. Wow, that seemed to take forever! Finally got out of there almost an hour later.
Found out that the insurance went up by $50 by adding my new van and taking the old van off. So now it's $180 a month for the 2 vehicles with full coverage. Power bill was way higher this month too. Need to make sure I pay at least 1/2 the past balance next month. The rest can be paid when we get taxes back.
On a better note, we have decided that starting next month, we are going to start putting a minimum of $200 a month away towards a down payment towards a place. He and I have talked about a farmette for as long as we've been together. Now we just need to find one. Easier said than done, given what our credit looks like. Anyway, can't seem to keep my thoughts straight. Gonna go find out what the kids are up to.