None of Us Are Immune from the Credit Crunch; I'm Living Proof

09.17.09
By John Ulzheimer

I've been closely covering the credit meltdown since before it began. And I've heard countless stories of job loss, bankruptcy, falling credit scores, deteriorating retirement balances, and billions in lost equity. I've interviewed hundreds of people for my stories, and I while my job is to "get the scoop", I'm always sensitive to their plight. Well, just to show you that nobody is immune from the affects of the credit meltdown, I offer you my story of loss.   

In late 2008, I bought a house in a desirable neighborhood for $282,000. That was about 15 percent below the market value at that time, so I thought I was getting a great deal. The house was in fantastic condition to the naked eye. I put 20 percent down and closed a month later. The plan was to move into it, but since we could not sell our primary home, we ended up renting it after I spent $3,800 to paint the interior.

Two weeks into my ownership, a tree from my backyard that was the size of a 737 was hit by lightening, fell, and destroyed my new neighbor’s fence. I paid to have the tree removed and offered, but was refused, to pay for the fence damage. Four weeks into my ownership, the new rental tenants told me that the house had roof rats, a fact that was not disclosed on the Property Disclosure by the previous owners. $1400 later, no more roof rats... and no more $1400.

Six weeks into my ownership, I got to buy a new dryer ($300) and paid to have a new hot water heater installed up to the current code ($600). Seven weeks later, the skies dropped a bomb in the form of constant rain. And despite the Property Disclosure clearly stating that the basement didn’t flood, it sure as heck did.

Eight weeks later, the tenants asked me for $1,000 to cover the costs of their property that was destroyed by the flooded basement. Nine weeks later they asked to be released from their rental agreement. I happily agreed, and now I have a flooding and empty home in a deteriorating housing market. $3,500 later, I supposedly had a waterproof basement, which again flooded like a submarine with screen doors the very next time it rained. And just today I accepted an offer for $245,000, just to rid myself of this white whale. After the agent’s commission and my portion of the closing costs, I will lose a little over $70,000, all in less than 12 months.

While many people would be preparing for a good stiff drink, I simply look at it this way... I’ll eventually be back on the buyer's side of that table and I’ll likely more than make up for the present loss with a future gain. Smile my friends; none of us are immune from the credit crunch.

More Experts Articles | News Home | Discuss in our Forum

A seasoned veteran takes a loss on a housing deal, proving that nobody is immune from the affects of the credit meltdown.