Friday, February 20, 2009
Anyone calculated their net worth lately? If you have the guts, you might want to.
I had to face reality this morning setting up the bank closing. The appraisal came in strong but a little lower than we would have liked. We bought a good property and iit has maintained value.
Our problem was our property is so unique there are no comps or comparables the last six months. The farm across the road sold two years ago and that is about as close as it gets.
We invested a lot of effort and money to bring this place back into its full potential. Wiring, roofing, painting, tiling, carpentry, bin repairs, the list is long. That makes it better to us but not always as much to the appraiser.
So he used replacement value and income potential to do the appraisal and that worked out OK for us and the lender. I can see where it wouldn't in many of these refinance problems in our country today.
Notice there is nothing in the stimulus to help the mainstream like us who pay the majority of the taxes? I can see why the public is up in arms. One broadcaster said 92% of us are paying our mortgage on time so our problem is the 8% who aren't and are in default.
Doesn't seem fair, does it? They say life isn't fair and it sure isn't going to be financially in this country.
Our cash stayed strong but our investments slipped a bit. We are conservative so it isn't a financial desparity like it is on many of these bad loans.
We were able to reduce our amortization by 11 years and maintain property free and clear of leins. That is what we both have to focus on as we plan to pay off this mortgage.
You know what mortgage means? Debt until death. I wouldn't trade mine for rent any day. Better check your net worth though if you haven't lately. Be brutally honest, the figures just aren't what they were a year ago.
Hopefully you have maintained most of what you have worked for.