How is the economy affecting you personally?
I feel there is a need to share our experiences during this critical downturn in our economy and how it is affecting each of us personally. I believe the ramifications are far greater than are being reported in the media. I am going to start with my personal story and hope you can comment on or add your stories. All the best.
I am a self-employed medical technologist contracting my services with two hospitals. I was always confident that medical testing was recession proof, hence my choice of work. That has proven to be incorrect. I have lost my contract with one hospital with no status as to whether that will be renewed, so they are without a technologist and the second hospital has experienced a dramatic drop in their census. (As has the first one that I am no longer contracted with.) The result of this is a drop in income for me is between $1500 - $2000 per month. There is no upside in sight.
Additionally, I tried to offset this by refinancing our fast track 15 year mortgage to a longer term loan, but due to the fact I am in CA, and home values have dropped so dramatically, I do not have enough equity in my home to cover the 60k I need for the 20% down. Even though our payments are always on time, GMAC is unwilling to help other than to tell me to default on our home loan, thereby maybe getting some temporary relief. I have yet to talk to anyone there who can explain to me the insanity of recommending defaulting on a loan vs. lengthening the terms of the loan which would result in thousands of additional dollars to GMAC in interest. Very sad indeed.
Additionally, I tried to offset this by refinancing our fast track 15 year mortgage to a longer term loan, but due to the fact I am in CA, and home values have dropped so dramatically, I do not have enough equity in my home to cover the 60k I need for the 20% down. Even though our payments are always on time, GMAC is unwilling to help other than to tell me to default on our home loan, thereby maybe getting some temporary relief. I have yet to talk to anyone there who can explain to me the insanity of recommending defaulting on a loan vs. lengthening the terms of the loan which would result in thousands of additional dollars to GMAC in interest. Very sad indeed.
