Gear Grinding Part 5: The Story of the Broken Tooth

[bigblue_dl]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

Yeah...in IT it doesn't work that way. Sales sells things we don't offer, then we're told to figure out how to offer it.

It used to be like that, but my new supervisor has put his foot down. It is quite refreshing.

 

[ExileOnDaytonStreet]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

Dear buyers of my house:

You know how over two months ago we all started looking into this thing where you would buy my house? Mrs. EoDS and I were diligent in making sure all of our ducks were in a row. You should have too. So that thing where you have a payment plan for a tax delinquency? Whatever. Glad you told your lender about that ahead of time. But that thing where you altered the payment schedule and didn't tell your lender (or whatever the **** the problem is)? Not cool.

Suddenly, your lender won't approve your original loan. I know they're re-running some numbers today, but they were supposed to get back to us by now, so barring a last-minute surprise from them: You can't buy our house. We, in turn, can't follow through on our offer to buy a different house, since (1) we had a contingency on that offer and (2) even without it we'd probably want to back out instead of tackling two mortgages at once.

We were supposed to close at the end of the week. Mrs. EoDS and I really liked the house we were going to move into. It was supposed to be our "forever" house, on a nice lot with a great kitchen and a fantastic school district. Mrs. EoDS (who is 7 months pregnant, mind you) and I had already packed almost everything. This weekend, we could be moving for the last time, but barring a miracle we'll instead be unpacking everything while our 2 year old daughter tries to figure out what the hell is going on (something most 2 year olds are terrible at).

You know, in the two months since we accepted your offer, and in the preceding months when you tried to figure out what you could afford when looking for a house, you could've taken care of this. You could have been responsible. But you weren't. Now instead of having a different offer to sell our current house, it's the 11th hour, and we suddenly have a lot of plans to cancel, not to mention some excited expectations to let go of.

Of course, we can't just go and turn around and start this process over again. EoDS Baby 2.0 is due in less than 2 months. We don't have the time to unpack, and get our house back into "showing" condition, and we probably won't have that time for another 5 months. In the last 2 months, the interest rates have gone up. We might have missed out on a unique window where we could sell our house more easily and get more house for our money on the next one we want to buy.

We totally would've had other offers we could've taken on our house. But no, now we're stuck with a missed opportunity and a ****load of boxes to unpack. I want the last 2 months of my life back.

Cheers,

EoDS

TLDR: Some guy was irresponsible in putting together his home buyer's loans and now Mrs. EoDS and I might have to give up on a dream house.

TLDRTLDR: #firstworldproblems

 

[joecct]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

EoDS

Can you rent out the old abode to cover costs? And congrats on 2.0.

 

[St. Clown]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

I signed up for automated payments for my car insurance last month. I get a call from my agent today telling me that my coverage lapsed for lack of payment. Hey, Allstate, what's the point of an automated payment system if it's not actually going to make a payment for you?

And yes, I verified that auto payment was truly on my account and active. Great tech they have here.

 

[The Rube]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

I signed up for automated payments for my car insurance last month. I get a call from my agent today telling me that my coverage lapsed for lack of payment. Hey, Allstate, what's the point of an automated payment system if it's not actually going to make a payment for you?

And yes, I verified that auto payment was truly on my account and active. Great tech they have here.

This is why I don't use any automated payments. I pay online for most of my bills, but never have "autopay."

The only monthly bill I don't pay online is my rent, and that's because it's check or autopay. No leeway.

 

[jen]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

lots and lots of things have been grinding my gears, because everything kind of sucks lately.

thanks for coming into work sick, Coughy McDeatherson. you are a true American hero.

hey, person with the sound cranked up on your laptop - can you not see the flashing box when you get an IM? you need the 'ding' for every single IM too? (although I wear headphones most of the time - this is still annoying)

CHEW WITH YOUR **** MOUTH CLOSED. AND DON'T TALK UNTIL YOU'VE SWALLOWED YOUR FOOD. I'm still waiting for a law to be enacted that bans these things.

I reserve the right to add to this list throughout the day, since I woke up at 4:45 without an alarm today.

 

[dxmnkd316]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

Three of my biggest pet peeves.

 

[FreshFish]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

EoDS

Can you rent out the old abode to cover costs? And congrats on 2.0.

Ditto on the congrats, and we were in a similar position once except we were moving cross country to start new jobs, didn't have the option not to move when the sale fell through!

What worked for us, was that we put the title to the old house in only one spouse's name, and then had the other spouse apply for the new mortgage based solely on one income (which we were fortunate enough to have). It is nearly impossible to qualify for a mortgage on a new home if you are also renting out the old one otherwise.

While on a cash flow basis, it cost us money for about two years, once you factor in the depreciation, it was net breakeven after taxes, and we finally got a decent price when the original home finally sold. We were lucky to have a really good property manager / realtor watch over the original house for us, she always had responsible tenants who did no damage, and for the entire time the house was only vacant about one month. Very lucky for us; one hopes you can find similar luck.

 

[leswp1]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

We ran 2 mortgages for 10 yrs after this happened to us. Negotiated out a deal with bank for the first house but it still stank. On the other hand we were out of the old house.

COngrats on 2.0. this situation is just prep for the crazy that happens when you add a child to your life. THen there is no such thing as a plan that doesn't have a thousand different things happen to it.

 

[St. Clown]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

Ditto on the congrats, and we were in a similar position once except we were moving cross country to start new jobs, didn't have the option not to move when the sale fell through!

What worked for us, was that we put the title to the old house in only one spouse's name, and then had the other spouse apply for the new mortgage based solely on one income (which we were fortunate enough to have). It is nearly impossible to qualify for a mortgage on a new home if you are also renting out the old one otherwise.

The Wisonsin house market is much different than what you see out east or even here in Minnesota. Homes in WI are quite a bit cheaper than national averages, from what various friends and family who have lived there tell me. It would be much easier to hold two mortgages there than here in MN, let alone having one in CT.

 

[bigblue_dl]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

The Wisonsin house market is much different than what you see out east or even here in Minnesota. Homes in WI are quite a bit cheaper than national averages, from what various friends and family who have lived there tell me. It would be much easier to hold two mortgages there than here in MN, let alone having one in CT.

Lots just across the river (looking south of Hudson, North-Northeast of Prescott) are going for half, or less of what they are in MN. We're trying to get an idea of costs/sizes/locations of lots, because at some point in the next 5 years we're thinking we're going to build a new house. Due to the cost, and the size of the houses just over the river, I would not be surprised if we ended up in Wisconsin, and commute to the Twin Cities. Added advantage is getting away from MN's oppressive taxes and fees...say goodbye to $800 license plate tabs!

 

[St. Clown]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

Lots just across the river (looking south of Hudson, North-Northeast of Prescott) are going for half, or less of what they are in MN. We're trying to get an idea of costs/sizes/locations of lots, because at some point in the next 5 years we're thinking we're going to build a new house. Due to the cost, and the size of the houses just over the river, I would not be surprised if we ended up in Wisconsin, and commute to the Twin Cities. Added advantage is getting away from MN's oppressive taxes and fees...say goodbye to $800 license plate tabs!

It didn't get very far this last time, but you have to be aware that there's a better than even chance that MN rescinds its "allowance" for WI residents to work in Minnesota and not pay the Minnesota income tax in addition to Wisconsin's taxes. Dayton made a push for it a few years ago, but was shot down. Now that Pandora's box has been opened, just wait for it to happen.

 

[bigblue_dl]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

It didn't get very far this last time, but you have to be aware that there's a better than even chance that MN rescinds its "allowance" for WI residents to work in Minnesota and not pay the Minnesota income tax in addition to Wisconsin's taxes. Dayton made a push for it a few years ago, but was shot down. Now that Pandora's box has been opened, just wait for it to happen.

I am really starting to hate this ****ing state.

edit: I'll just change my job to our Indiana location, or Wisconsin location, and telecommute.

 

[FreshFish]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

It didn't get very far this last time, but you have to be aware that there's a better than even chance that MN rescinds its "allowance" for WI residents to work in Minnesota and not pay the Minnesota income tax in addition to Wisconsin's taxes. Dayton made a push for it a few years ago, but was shot down. Now that Pandora's box has been opened, just wait for it to happen.

Most states give you credit for income tax paid to another state. Typically it is at the lower of the other state's rate, or what you would have paid on that income had you been taxed in your resident state. You don't wind up paying state income taxes in two states on one income (I work in two states for one company, splitting time between the two locations, and state tax filings are always gnarly that way, I have to allocate my income between the two).

Professional athletes and entertainers have to file income tax returns in every state in which they play. Their salaries are so high, that even eight games a year that ARod plays in Missouri is worth $27,000 of state tax revenue. That's why so many athletes try to establish FL as their "permanent" residence (at least 183 days a year living there). Pro athletes wind up filing something like 20+ state income tax returns each year, for example.

High-income tax states also put out a lot of production incentives to TV and movie companies to film there: the production company itself gets tax breaks, and then all the people who work on that production all pay high income tax rates for the income they earned while working there.

 

[JF_Gophers]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

Ya you wouldn't have to pay tax twice on your income. It would be split by state for the time worked there.

 

[St. Clown]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

Most states give you credit for income tax paid to another state. Typically it is at the lower of the other state's rate, or what you would have paid on that income had you been taxed in your resident state. You don't wind up paying state income taxes in two states on one income (I work in two states for one company, splitting time between the two locations, and state tax filings are always gnarly that way, I have to allocate my income between the two).

Yes, I know how it works today in this state because I have a friend who moved to Hudson, WI, about eight years ago. HOWEVER, Governor Dayton started a discussion a few years ago that would require Wisconsin residents to pay income taxes in MN for their work performed here, which is not something that currently happens for entertainers but not WI residents working for, say, 3M. The reason this is a big deal is that MN has higher income tax brackets while WI residents pay higher taxes in other areas, like property and sales taxes. If WI then gave tax credits to their residents for those taxes paid to MN, they would still lose because now they're paying the higher income tax rates and more on those other taxes. Since MN residents pay a greater percentage of their taxes to the State than Wisconsin residents, it would become a matter of how much would a person save on their housing costs in WI to see whether or not it's worth the potential of paying MN income tax rates, increased taxes in other areas that WI has, in addition to the already increased transportation costs (due to greater distance travelled to work).

 

[joecct]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

New York has been doing this for years. If you live in NJ and work in NYC you have to file
New Jersey Income Tax Return
New York State non resident income tax return
New York City non resident income tax return.

It's expensive.

 

[unofan]

New York has been doing this for years. If you live in NJ and work in NYC you have to file
New Jersey Income Tax Return
New York State non resident income tax return
New York City non resident income tax return.

It's expensive.

Frankly, I can't believe Minnesota doesn't do that already. Basic tax law is that the tax is owed in the state where it's earned, which in this case would be MN.. I know when I lived in Iowa but worked in Nebraska, I had to file both state's returns with iowa giving me credit for Nebraska taxes paid.

 

[ExileOnDaytonStreet]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

Good news on the housing front: Everything is working out with the buyers! Deal closes tomorrow.

Bad news: Suddenly our loan people started throwing fits at us. Over the past two months, they've been running the numbers and sending us updates with regard to closing costs and how much we need to bring to the closing for our down payment. That magic number floats around a little bit here and there, goes up or down a hundred bucks or so, no big deal. Well, suddenly yesterday they let us know "something was wrong" and that one of the credits that they were giving us the whole time was more than what was legal for our loan size and they would need to add on a $2000 "principal reduction" and bump up the amount we need to bring to closing. That was not okay. I mean, it's **** near fraudulent to suddenly tell us three days before closing that we have to pay $2000 more to get the exact same loan amount.

Fortunately, a few well placed complaints is eradicating that problem for us. Now it's clear and easy sailing. Until we have to move our entire lives across town on Friday and Saturday. And then unpack. And then prepare our man-to-man defense for EoDS Baby 2.0. Oh hell, it's never going to get easy is it?

 

[LynahFan]

Re: Gear Grinding Part 5: The Story of the Broken Tooth

"Life is pain. Anyone who says differently is selling something."

It's actually quite liberating once you realize this truth and make peace with it.