Friday, February 28, 2014

Ending the month on a high note

We got our annual escrow review today, always enough to make me sit down before I open it. Last summer, our lender decided to start paying our property taxes three months before they were due, thus sending our escrow into the negative and our payments soaring. I was told it would even out within a year once everything was adjusted to the new schedule. Call me a pessimist, but I didn't believe it.

But ... today's mail brought the news that our mortgage payment will be going DOWN $85 a month! All I can say is ...

WOO HOO!!!!

Soda update: Two weeks. No soda. Not a drop. Hold on, because I think the earth just shifted.

Sarah

9 comments:

  1. I love your sense of humor...it makes me smile :)

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    1. Greetings from California! I’m bored to death at work so I decided to check out your blog on my iphone during lunch break.

      I really like the info you present here and can’t wait to take a look when I get home. I’m amazed at how fast your blog loaded on my mobile .. I’m not even using WIFI, just 3G ..
      Anyways, awesome blog just like http://danieluyi.com

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  2. Yeah that's wonderful news! I always cross my fingers before I open our yearly escrow envelope...and hope it has an overage check in it!

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    1. Hi Lisa,
      Thanks for reading and for your comments and suggestions.

      To give you a bit of background, our third son was born with a genetic disease that left him profoundly physically disabled. He requires a ridiculous amount of equipment and accommodations. Just to give you an idea: his current power wheelchair (this is #4) cost $35,000, of which insurance covered 80%. He is on a ventilator at night, has a lift, a hospital bed, a mechanism to allow him to feed himself etc. Too many devices to list. All of those were at least partially covered by insurance. What was not covered were a bathroom addition (we live in a 70s ranch and there was no way to get him into the existing bathroom), a ramp on the front of our house, modifications to a van and on and on. Add numerous hospital stays, regular visits to specialists .... The expenses just for him are astronomical and a large part of our debt. We have two other children, one of whom also had medical issues as a child. I had to leave my career in order to be a full-time caregiver. That also added to the financial stress. I earned a good salary and overnight it disappeared. Of course, there was also the stupid tax. Life happened and we weren't ready. But here we are and we are tackling it head on.

      We do not harbor any ill will toward those who choose bankruptcy. For many, it is the only resort. It is our personal conviction, however, that we should pay back the money that we owe. And so bankruptcy is not a route we have chosen.

      Do I believe we can clear this debt? Absolutely! Six of the credit cards are on payment plans and will be paid in full in two years. That will free up income to tackle the remaining debts. We have paid off $50k in three years. We could have paid off your bankrupted debt in a year and a half!

      We have retirement savings in a 401k and we are fortunate that my husband will receive a healthy pension upon retirement. By then our house will be paid off along with the rest of our debt.

      We do have a long road ahead of us, but little has come easy to us and, really, isn't that what life is all about? The toughest circumstances build the greatest character. You are young and have a wonderful life ahead of you. Don't let the hard times defeat you. Great satisfaction comes from defeating the biggest obstacles!

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  4. I love your response to Lisa - I might have been a bit harsher :) I have been cheering you on every step of the way since you first started your blog and I will continue to do so. I don't think I would have ever declared bankruptcy either - if I create a mess I like to clean it up myself. You have come SO far Sarah and I feel so proud of you!

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