Have you been laid off? Can you still make your payments? How prepared are you?

I

IrvineCitizen_IHB

New member
Had a bunch of friends/coworkers get laid off the past 6 months. It's a nightmare out there. Industry is high-tech integrated circuits here in OC. 600 resumes for every open job.



Some were prepared - refi of the house prior to layoff, year of savings, started unemployment right away - they can make their mortgage payments. Remember that unemployment is something around $1500 a month in the highest bracket. You do have to pay taxes on it but I believe you can push it to 18 months now. Who knows if the state's checks will continue to be good, however.



Some were unprepared - really high mortgage payment and very little (less than three months) savings. The talk of walking away from their houses is huge.



What do you think would be prudent while you STILL have a job? Maybe tap that HELOC a bit and pop it in the bank? This is a rob Peter to pay Paul situation but it will definitely buy you a small amount of time. I have a friend who tapped her HELOC for 60K and put it into savings. She told me her monthly payment is very economical, something like $250 a month. Of course we all know that can change and fast! A refinance to save a point or two would be imperative, although with today's rates you'd have to be at 7% right now to make it worthwhile.



If you have been laid off tell us how you're surviving and making the house payments. If you want to.
 
Due to my specific circumstances, I do not believe I will ever be in danger of losing my job. However, out here in Riverside, my payment is so low ($600 a month plus taxes and insurance) that any minimum wage job, and/or renting out a few rooms (single guy in a four bedroom house) would easily cover my payment. There are advantages in living in the sticks, ladies and germs.
 
My better half lost his bread and butter job 2.5 months ago. He's also an artist, of sorts, and has had a few jobs since then, and is using this time off to expand his business/passion. This, along with unemployment, and stretching our dollars, we've actually been able to sock away money during this time. We did a deferment on some student loans, but otherwise are able to make all our regular payments.



I like living "poor". Of course, I'm looking forward to the day when I can buy a pair of jeans without an overwhelming sense of guilt, but in the meantime I enjoy seeking out free fun, and shopping at Zion for a weeks worth of produce for under $10.
 
[quote author="trip.threat" date=1245280145]

I like living "poor". Of course, I'm looking forward to the day when I can buy a pair of jeans without an overwhelming sense of guilt, but in the meantime I enjoy seeking out free fun, and shopping at Zion for a weeks worth of produce for under $10.</blockquote>


Zion produce is an amazing deal. If I could make the hubby love fruits and veggies like I do we'd eat for 1/10 of the cost. Derail of thread complete.
 
[quote author="IrvineCitizen" date=1245231273]



Some were prepared - refi of the house prior to layoff, year of savings, started unemployment right away - they can make their mortgage payments. Remember that unemployment is something around $1500 a month in the highest bracket. You do have to pay taxes on it but I believe you can push it to 18 months now. Who knows if the state's checks will continue to be good, however.</blockquote>


You don't have to pay STATE taxes on UI payments. You do however need to pay federal taxes on that unemployment income.



In the highest bracket, UI provides for $2,058 per month, not $1,500. The max regular weekly benefit amount is $450 and there is a $25 extra Fed stimulus on top of that.



I'll be collecting some UI beginning a few weeks from now. Thank god for savings.
 
[quote author="ipoplaya" date=1245395462][quote author="IrvineCitizen" date=1245231273]



Some were prepared - refi of the house prior to layoff, year of savings, started unemployment right away - they can make their mortgage payments. Remember that unemployment is something around $1500 a month in the highest bracket. You do have to pay taxes on it but I believe you can push it to 18 months now. Who knows if the state's checks will continue to be good, however.</blockquote>


You don't have to pay STATE taxes on UI payments. You do however need to pay federal taxes on that unemployment income.



In the highest bracket, UI provides for $2,058 per month, not $1,500. The max regular weekly benefit amount is $450 and there is a $25 extra Fed stimulus on top of that.



I'll be collecting some UI beginning a few weeks from now. Thank god for savings.</blockquote>


I'm sorry to hear about your situation but pleased to learn that the limit is 2K a month and only Fed tax is required. Is it still 18 months max or has that been scaled back?



Sorry for the question. I should let Google be my friend.
 
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