The Happenings Over the Last Few Weeks

So I mentioned previously that we currently have two houses.  Well over the last few weeks we entered into a Rent-To-Own agreement to sell the vacant house.

landlord

The process was similar to a normal residential sale.  Buyer submits a purchase agreement and gets a home inspection.  The difference is there is a lease option, which states the option fee aka down payment, and a rental agreement.

The pros for the seller are for the term of the lease

  1. Mortgage payments paid.
  2. Hopefully a monthly profit.
  3. Continued tax deductions.
  4. Typically a higher quality tenant, since they do want to buy the house.
  5. Tenant is responsible for maintenance and repairs.

Cons for the seller can include

  1. Having to be a landlord.
  2. Tenant could trash the place once they realize the still can’t afford the house.

The rental agreement for our RTO is 2 years, at which time the buyer has to obtain financing or lose the option fee.  From what I’ve read the buyer never ends up purchasing the home for most of these RTO.  Check back in two years to see if this is the case for us ;ob

The race for the tenant to move in was fraught with drama, but that’s a topic for another post…

So what has happened in 7 years?

Well looking at my last post 7 years ago, I guess I quit blogging because of a death in the family. I did end up transferring the loan balance to a credit card at 0% until September 2009.  This ended up being a really good move because I was laid off in February 2009.  That balance transfer cut my car payment in half, and I found a job in September of 2009.  At the time I was laid off I had 14k in my savings account.  I managed to save another 5k while I was laid off.  I was able to do this because I was also teaching music lessons on the side and put that money directly into savings.  It did hurt a bit to pay off that 13k credit card bill, but I was worth it.  BTW, I’m still driving that car :o)

Since I had been making us save for about 3 years and keeping our expenses low, we were able to live off of half of Mr. Thrifty Femme’s salary while I was laid off.  Ah, those were the days!  I should make it a goal to get back to that!  These days I think we could live off of one salary alone.

Boring events include

  1. Saving money.
  2. Opening a HSA.

Big events include

  1. Toddler!Thrifty Femme entering the world.  I will not be posting pictures even though she is very cute :o)
  2. Purchasing a new home in 2014.
  3. Potentially renting our former home 2015.

Yeah 2 and 3 don’t exactly square, but ya live and learn!  That’ll be a topic for future post ;ob