Twin Cities Economy, Real Estate, and Short Sales: HOPE

I'm the first in, I hope, a very long line of supporters of this post.  Learn from our mistakes, adjust to the market and keep foraging ahead. Success will come to those of us who will put this plan into action. It sounds like you already have.

I have as well.

Nate,

I bought in late 2006 in South Mpls, at what I thought at the time was the bottom of the dip in the real estate market. I've had to learn to accept I was wrong, and that my home would likely lose value. Family and friends asked me if I was considering refinancing, and my answer was always, No, that I had no equity in the home (especially with a zero down mortgage). I was disappointed, but since I planned on living in the home for years, figured it could be worse. At least I had a job, and we were working hard to pay down our debts. Endeavor to perservere, I always say.

Then, from the "It never hurts to ask" category, I recently called my lender and asked about a refi option. She was skeptical for all the same reasons why I hadn't made the call sooner, but agreed to look into it. Turned out, the house actually appraised above what I paid for it, and I am looking at closing on a refi next month, dropping my interest rate 1.75 percent and saving about $250 per month on the note. I was pleasantly ecstatic, but I never would have had this opportunity if I hadn't risked being disappointed and made the call.

Maybe I was smart to buy where I did, as my neighborhood seems to have held value well. Maybe I got a great deal when I bought; that's what my appraiser suggested. Or maybe I'm just lucky. But as your post indicated, getting from here to there took hope followed by action. Turned out a refi wasn't a pipe dream after all. We're not home yet; I never open the champagne until the close, but it's sure a lot jollier around our house these days.

Just one (hopefully) happy ending from a Mpls homeowner to substantiate your claims.

Thanks for the positive spin. Too much moaning and groaning and a lot of it seems to be politically motivated. I'm tired of hearing it. No one is going to fix it for us. Each one of us has to take what we've got and move forward with it. If you can't do anything but complain, then go find another job.

I did a post about the new "normal" in our economy as well a while back Nate.  I think this downturn, although very difficult for a lot of us, will serve as a great learning experience.  Like you said, living within your means, and paying as you go, will hopefully be the new norm.  Good post and best of luck to you.

To some degree, we are living a lifestyle similar to the late fifties where people not only paid cash, but enjoyed activities that were more home centered. 

I learned my lesson early. I went to college, charged alot of things, bought a house, charged some more things. Single and choking I made a promise. Get me out and I'll never go back. I emphathize with everyone knowing the grief of living beyond your means brings to you everyday. Oh the having and charging is great, but the grief is worse.

My home has 50% equity. My truck is paid for. My husbands SUV is paid for. We have toys, paid for. We have no credit card debt. I want a new vehicle, mine is a 11 year old pick up- not the best for showing homes. I want a camper. I want to ad on a garage. I wanted to take my kids on a vacation.  I want I want I want........but I remember the grief.

My silver lining was I learned a lesson. This too shall pass and hopefully we all will be better people. Yes a new normal. My area is stable in most areas. does this mean everyone is out of the woods including me no, there still be some bad things happen.  A new normal, sounds do-able.

Learn from our mistakes is something, and learn from other countries is good, there are some other countries that they save money at the bank and then when they are ready they buy things and they don't any interest, pay interest here and there and over there it's not the way to go besides all the crisis around.

Yes, I do believe this will be the new norml and I also think it is good to start thinking that way..It permits you to start reinventing the way you operate your business and your life!  My husband and I have learned to incur as little debt as we can and our cards are paid infull every month.  We learned early on that owing money is like wearing handcuffs.