***OK, I wrote this a while back and didn't post it. And since I don't have anything better to post right now, and I feel bad leaving the trashy New Year's photos up any longer, here we go.
Finally our shoe ducking president has agreed with the rest of the world that indeed we are experiencing a recession and not just an economic downturn (what PR asshole came up with that one?) so now, life as our family has known it has changed. Not that we have ever lived beyond our means, but we certainly have taken advantages in the housing market, and when times are good for our wealthy friends, they buy new stuff and usually offer up any good junk to us before shit-canning it. I can imagine that the gravy train will be screeching to a halt very soon.
My hubby works construction and has been cut down to 32 hours a week, even with the reduced hours he's having a hard time keeping busy all day. There just isn't any work around. The construction industry is flooded with workers and nothing for them to build, repair. The housing crash has stopped construction in many areas around here. Land that should have been left farm fields, is now big piles of frozen dirt with one or two lone houses. I don't think that was the idea. Did nobody see this coming?
Not that we have any official real estate training or economic insight, but we knew when to get out and settle for a fixed rate mortgage. I know that a house and a mortgage isn't right for everyone, but since when is an interest only mortgage a good idea for a long term investment like a house? Maybe for developers and builders, but not for the average Jane and her family. I have heard countless stories (on NPR) of families who didn't understand the terms of their mortgage and lost it all.
Now the rest of us who responsibly took out mortgages might not be able to pay for them because the job market has taken a swan dive into the toilet. This really hit home with me because, no I don't work, but that was the plan for us. We can live on one income and prefer to, if that income is steady and continues to also include health insurance.