Reflections (2): The FUCK post

After leaving a highly-paid job, giving away money I don't really need, and selling/donating most of my worldly possessions, I have come to a place in my life where meaningful clarity is attainable. I still have a long way to go but as of now there are certain things that are crystal clear:

FUCK people who claim to garner even an ounce of happiness from purchasing yet another “thing” they don't really need, EVEN AS they head out to a job they actively despise JUST SO that they can have the cash (or credit?) to purchase that very “thing” in the first place.

FUCK business suits, conference calls, billable hours, and making partner.

FUCK people who measure their self-worth by the size of their house, the make of their car, how far they have climbed the corporate ladder, the schools they attended, the restaurants they frequent and/or the people “they know.” These poor, insecure assholes are living in a dreamworld with shaky foundations, their lives ever-dependent on how they measure up against every other poor, insecure asshole in their sad little world of pretentious make-believe.

FUCK having 2 weeks of vacation a year.

FUCK the adrenaline rush you get when you answer a partner's question at 11:00 pm via Blackberry.

FUCK people who can't wait to tell you how late they worked the night before.

FUCK money. Seriously.

FUCK chicks that are suddenly more open to banging you once they realize you have money.

FUCK dudes who are suddenly more respectful when they realize that you attended Harvard Law School.

FUCK office politics, gossipy associates and awkward conversations with senior partners at firm functions.

FUCK having a house so large that you are forced to hire a cleaning person. If you think about it, you are pretty much FUCKED because you don't have the time to clean the place yourself BECAUSE you are working 80 hours a week in order to afford that large house in the first place.

FUCK that horrible feeling you get on Sunday when you know that you have to start all that office bullshit again on Monday.

FUCK that horrible feeling you get on Saturday when you know you have to work on Sunday.



FUCK me for having taken so long to figure it all out.


[Reflections introductory post]

House on the Market!

[Photo: stojerealtor.com]

It’s done! The townhouse is now officially on the market. I can’t tell you how relieved I am. This has been a long time coming. There is still a ton of stuff to do (dealing with open houses, cleaning, paperwork, etc…) but the fact is that I am one step closer to embracing freedom. On my own terms. You can’t beat that!

Ok, back to work. Term Sheets, SPAs and APAs are easier to read when you actually see the end in sight. Only a couple of more months to go...

Townhouse Status

[Photo: claybennett.com]

So, I’m finally getting a handle on the whole townhouse issue. Last week I talked to a couple of advisers and got all the relevant info sorted out. The bottom line is that I can start the sales process at a moment’s notice, depending on how things shake out with my job, the economy and every other ball that is still up in the air. This is an awesome development and has allowed me to breathe a little easier this week. Here is a summary of my thought process on this whole issue:

As I mentioned in an ealier post, the options on the table are the following: (1) rent; (2) sell; (3) short sale; (4) deed in lieu; or (5) foreclose. At this point, it is pretty clear that it makes no sense to rent the townhouse, unless I am prepared to kick in a not-insubstantial amount to cover the mortgage every month. This wouldn’t be a problem if I actually expected to be able to sell the townhouse for some kind of profit in a couple of years. However, that’s just not realistic. Selling the house outright is probably not going to work either given the state of the market and the fact that even if I were to find a real buyer they might not be able to secure financing (banks are basically turning down people with great credit due to the credit crunch).

One option that I’ve already discounted is to just walk away and let the banks foreclose. It’s something more and more people are doing the longer this housing crisis continues. On my end, I am the perfect candidate for walking away. As I’ve mentioned before, I paid literally nothing, nada, 0, zip, to buy this place. The mortgage was fully financed and the seller paid all closing costs. All I did was put my stuff in a moving van and unload when I got there. As for the monthly mortgage expenses, let’s just say that after getting a check from my tenant and annualizing my home interest tax deduction I’m paying a ton less than what my peers pay for housing. Put it another way, since I moved into my townhouse I am actually SPENDING LESS $ on housing than anyone I know. Bottom line, I don’t feel as if I have anything invested in this house so why shouldn’t I just walk away outright?

The answer is it would be the worst possible decision. Aside from all the moral qualms that walking away from a mortgage elicits, anyone who does walk away may face a ton of tax liability, not to mention the fact that the banks may come after you to get their money back. This is stuff that I just do NOT want to deal with in any way shape or form.

Which basically leaves me with two viable options on the table: a short sale or finalizing a deed in lieu. There are some drawback to both options, but nothing insurmountable or horrendous.

SUMMING IT ALL UP
So, to sum it all up, I will most likely put the house up for sale first and see if I get any bites. If not, I will just negotiate a short sale or, if that fails, a deed in lieu. Not the most simple process in the world. But hey, there is nothing wrong with facing some complexity in order to secure long-term simplicity.

New Tenant

In an effort to boost my savings I’ve decided to get another tenant for the townhouse. As of October 1st a very nice Polish student will be staying in what used to be the guest bedroom.

I’m pretty psyched about this. Having another check coming in on a monthly basis is definitely a big plus and will make the Plan that much more feasible. Also, the fact is that I’m usually not home and I hardly see my other tenant anyway. This really shouldn’t change things much. In the end, my savings account will thank me.

Putting It All Together

So, let’s review. To meet my goals I’m going to need to focus on the following:

Getting Rid of Consumer Debt/Student Loans
Start: Ongoing
End: September 1, 2009

I will continue setting aside a certain amount a month to pay down my consumer debt. At the same time, I’m going to investigate the practicalities of having my law school pay for my student debt.

Sale of Stuff
Start: July 2008
End: December 2009

I will start by cataloging all my possessions, taking pictures, putting up ads on craigslist/ebay and seeing what I can sell. I’m also going to talk to friends and family to see who needs specific stuff so that they can have first dibs. I have a feeling that as crazy as some of these people think I am for doing this, in the end they are going to appreciate Santa Jack.

Selling the Townhouse
Start: October 1, 2008
End: September 1, 2009

By October of this year I will start contacting lawyers and real estate professionals to figure out best options. Given the change in administration and the various mortgage-related pieces of legislation floating around congress at the moment, it might actually be prudent to wait to get the ball rolling on this. Who knows…maybe the market will improve enough for me to sell at no loss. Or maybe legislation will clarify what will happen to people in my situation. Regardless, I want to be in a position to put the place up for sale by March 2009 and finally dispose of it by September of next year.

Leaving My Job
Start: December 17, 2009
End: December 31, 2009

Woa, that was sweet; actually had to look at a calendar to figure out when I would need to give two weeks notice so that I could leave my job by the December 31, 2009. That felt good…



So, there is it! I now have a semblance of a plan. All I need to do at this point is put one foot in front of the other and get started. And in between I’m hoping to recruit friends, family and you, my dear reader, to keep me honest and on track.


SHIFTING FOCUS
Up until now, my posts were intended to flush out the practicalities of my journey with a touch of the universal in between the couch cushions. But personal growth does not come about through to-do lists. Having already surrendered myself to this process I have a very strong suspicion that it is the struggle itself that brings us closer to the universal. That’s why I suspect that from here on out this blog will shift focus a bit; practicality will be supplanted by a furious focus on the every day struggle to make that next step on a journey towards the unknown. And it is the unknown that beckons.

THE ENEMY, PART TWO: THE TOWNHOUSE

I don’t know what I was thinking. I guess I was in the same frame of mind as thousands of other Americans when it comes to homes: buy up to what you can afford and then some. It didn’t help that I had just ended a very complicated, painful relationship and the need to feel secure, to lay solid roots was strong. It also didn’t help that after ending said relationship I spiraled into an abyss of partying, womanizing, and out-of-controlness of epic proportions. At the time, the people I was hanging out with were the materialistic type, always wanting to go to the most exclusive clubs and restaurants so they could order the most expensive drinks and be seen with the richest people around. Gag…

Seriously, what was I thinking buying this behemoth of a townhouse? Four levels, 6 bedrooms, stainless steel appliances, 3,000 square feet etc...Double Gag…

On the other hand, it cost me nothing to buy it. I’m one of those suckers who fully financed the mortgage and had the seller pay all closing costs. I basically paid absolutely nothing to move in and have been paying only the interest ever since. Thankfully, the mortgage rate does not reset for another 8 years but that’s irrelevant; I’ll be gone within a year and a half.

Simplicity Meets the Enemy
If I want to simplify my living arrangements and leave this place for good I have the following options:

1. sell the house outright;

2. rent the place out;

3. sell the house through a short sale;

4. foreclose.

Timeline
The bottom line at this point is that the place is worth less than what I paid for it. I could try and sell it but will definitely lose quite a bit of money, money I just don’t have. In theory, I could also rent the place out, but I’ve done some calculations and I would still have to kick in $17K a year out of pocket just to meet the basic payments. That’s just not possible for someone just happy to live on a limited amount of interest a year starting in 2010.

It is looking more and more likely that what I will need to do it approach the lenders and try a short sale. The way I see it I didn’t really invest anything into the place and so long as the lender realizes that I will not be able to afford payments after I leave my current job, I can just hand the place over without any qualms.

Given that it takes anywhere from 3-7 months to negotiate with the lender and finalize a short sale, I’m thinking that I will get the ball rolling starting in March 2009. Between now and then I’m just going to focus on my other simplifying goals and lay the groundwork for leaving the townhouse. I will talk to real estate agents, lawyers, etc…and see if they can help me figure this out in the best way possible.