Economic conditions on the backside of Forbearance

[sobo]

Ditto. Only debt I have is my mortgage. I'm pretty sure that makes us unicorns in that respect. Most Americans are mired in debt, buying things they can't afford because somehow they think they're entitled to them.

Good idea on paying ahead on the mortgage given the current financial waters.

If having a mortgage as one's only debt makes one a unicorn, what does not having any debt whatsoever make someone like me?

 

[sobo]

We were going to go to Italy this summer with our flights paid for with points. If they let us go next summer, I can probably pay for most of the hotel/Airbnb locations also. Free two week trip to Italy? Yes, please!

Where ya goin'? I grew up in Tuscany on the beach near Pisa and up in the hills behind Livorno. Gorgeous place. Have returned many times since leaving there.

 

[The Heretic]

If having a mortgage as one's only debt makes one a unicorn, what does not having any debt whatsoever make someone like me?

Sasquatch if you own a home

 

[sobo]

Then henceforth, you may refer to me as Sasquatch...

Own my home free and clear - no mortgage
Own my 3 vehicles free and clear - no payments
Money in the credit union - about 5 months' worth of mandatory expenses
Emergency fund - about another 7 months' worth of mandatory expenses
Two 529s for the kids' college expenses - funded at about 50% for each (really the only reason I'm still working at this point)
Stocks/bonds investments, other real estate assets, two 401(k)s, and an IRA.

Considering that when I got divorced just 10 short years ago, I was in debt over $140,000 and just 5 years into a 30-year mortgage, and now I have a NW > $1.3 million with $0 debt, I think I've done pretty well over the last decade. I do not make "a lot" of money by most standards, but I have learned to delay my gratification and only buy when all of the required funds are available. I cannot begin to tell you of the peace, joy, and lack of stress that reaching this state of being provides...

"If you will live like no one else, then later you can live like no one else."
---Dave Ramsey

ETA: To correct the three 401(k)s to just two and add the IRA (I forgot how I structured the three accounts).

 

[Rockys]

Having a mortgage be the only debt and an emergency fund makes life a lot less stressful these days. I learned that lesson long ago.

 

[Medic!]

Then henceforth, you may refer to me as Sasquatch...

Own my home free and clear - no mortgage
Own my 3 vehicles free and clear - no payments
Money in the credit union - about 5 months' worth of mandatory expenses
Emergency fund - about another 7 months' worth of mandatory expenses
Two 529s for the kids' college expenses - funded at about 50% for each (really the only reason I'm still working at this point)
Stocks/bonds investments, other real estate assets, and three 401(k)s

Considering that when I got divorced just 10 short years ago, I was in debt over $140,000 and just 5 years into a 30-year mortgage, and now I have a NW > $1.3 million with $0 debt, I think I've done pretty well over the last decade. I do not make "a lot" of money by most standards, but I have learned to delay my gratification and only buy when all of the required funds are available. I cannot begin to tell you of the peace, joy, and lack of stress that reaching this state of being provides...

"If you will live like no one else, then later you can live like no one else."
---Dave Ramsey

Well I started with nuthin!







And I still have most of it.

 

[Dungannon]

Any indication on how many could have paid their debts but didn't because "Corona" gave them cover?

At least one! My son rents their first home, and the guy quit paying rent as soon as the prohibition on eviction went in effect. He was still working at the time, but eventually was laid off, then called back, then laid off again. Don't know his current work status but evidently his mother found out and contacted my son to say she was paying it all up to date [$8000].

 

[sobo]

The mom was paying it up? Not her kid? Sheeeeeeeeeit...

 

[Dungannon]

The mom was paying it up? Not her kid? Sheeeeeeeeeit...

I know. She has integrity, but evidently it didn't take hold with the son. Don't know anything else about them, but hope she isn't enabling him in any other way. If she is smart, she'll move into a small house with no room for shiftless son to flop, and put her assets beyond his reach. Just saying...

 

[sobo]

He sounds like he's a Pure Taker...

 

[joken]

This is true. Wife and I were discussing those who have multiple rentals and don't have high overhead to cover skipped payments from tenants. How quickly ones house of cards can tumble if leveraged too far.

There are a lot of real estate investors that tout maximum leverage as the path to riches and it can be but it can also lead to foreclosures in a bad economy. We are debt-free but taxes are always there.

 

[bgdawgrr]

There are a lot of real estate investors that tout maximum leverage as the path to riches and it can be but it can also lead to foreclosures in a bad economy. We are debt-free but taxes are always there.

Yup. With Trump's executive order, there will be a flood of investment properties on the market. Some out of desperation, others as exit strategy.
There really is no true landlord relief, but many may be saddled with deadbeat tenants. With $600 reduced to $400, those on the boarder may now (voluntary or not) join the club of not paying rent.
If I was near retirement, I'd cash out my rentals for the top of the market equity and let someone else deal with the risk.

 

[GWS]

We got out from under 2 years ago. Best feeling EVER.

re: the kid whose mom covered his back rent, If he is a "taker" she is why.

re: Eviction moratoriums I wonder if these same legislatures that are giving renters eviction protection will give the landlords a moratorium on property taxes.

 

[sobo]

We got out from under 2 years ago. Best feeling EVER.

Ain't it, though?

re: the kid whose mom covered his back rent, If he is a "taker" she is why.

Gotta agree with ya on that one...

re: Eviction moratoriums I wonder if these same legislatures that are giving renters eviction protection will give the landlords a moratorium on property taxes.

Fabulous question, although I think we all know the answer to that one already...

 

[Ringo]

Any indication on how many could have paid their debts but didn't because "Corona" gave them cover?

most likely the same...

 

[AshWilliams]

If having a mortgage as one's only debt makes one a unicorn, what does not having any debt whatsoever make someone like me?

That's impressive, sir, and that's exactly the position we're striving for and is the North Star of our financial roadmap. If life doesn't jam a monkey wrench in the gears we should be there in about seven to nine years.

 

[ATCclears]

Tidbit. Enjoy your favorite restaurant or two while they are still in business, especially those that are unlikely to survive using a take-out-only model and are currently operating with outdoor seating.

Fall and Winter are coming. People won't utilize outdoor seating in cold, wet, or windy conditions...

 

[BSDave]

We could learn from it and decide not to destroy the economy the next time a virus comes around.

They didn't have to this time and new it. Its all political to destroy Trump and the nation as we knew it. The political left will do anything at this point to convert this nation socialist.

 

[BSDave]

At least one! My son rents their first home, and the guy quit paying rent as soon as the prohibition on eviction went in effect. He was still working at the time, but eventually was laid off, then called back, then laid off again. Don't know his current work status but evidently his mother found out and contacted my son to say she was paying it all up to date [$8000].

I have a neighbor that rents from another neighbor. She died so her kids were going to sell all of her homes and renal homes 4 total in our neighborhood. Soon as the non eviction thing came out the kids were forced not to sell the rentals and I know one of them (they guy that lives next to me) quit paying rent. 3 br 2 bath on 2 acres with a huge 8 bay shop zoned for a home business. The kids were asking $425k until they got screwed.

 

[BSDave]

I own everything other then my house outright well, except for $4700.00 on a credit card. Friday I pulled my investment money from the stock market after taking a beating. All said total losses from my initial investment I lost $3500.00. Close to 30k total plus the interest I had to pay last year. I'm just going to take my lumps and use what's left to pay my house off in full and hoard the rest away for a rainy day. I'm going to feel better knowing at least I'll have a place to live when the $hit really hits the fan and I loose my job. If it gets really bad I have already collected up batteries,solar panels,generators,gas and inverters. Along with many other preps to get my family though.