My House Is Paid Off!

by iowenomore

Here is how it happened…My son has bugged me for 12 years to sell it since I don’t live in that state anymore. I held onto it thinking I’d always have a place to live if it didn’t work out where I live now. Him and his wife went to my house a few months ago and he called me up saying it’s finally time to sell this thing. He wanted to make improvements and get as much for it as possible so I’d have something for my retirement besides the one I’ll be getting from my job. It all happened so fast! I had been reading Joe’s blog and had finally realized that I really did want to retire debt free and then my son ended up at my house to fix it up and sell it, all at the same time. It made my head swirl as I heard myself tell my son, “Do whatever you want to it, sell it.” My son had just sold his house after fixing it up and made a great profit from it.

My son called USDA/FHA, found out what the payoff was and that’s when it started to feel real. I was nervous, feeling like a piece of my security was going to be gone very soon. But that security was costing me a fortune at 7.5% interest! He laid it all out to me and it wasn’t pretty. I have had this house since 1996. I bought it for $54,000. and after 12 years I still owed $47,000.!! I’m sure $54,000. doesn’t sound like a lot to most people, and it’s really a beautiful house. It’s 2 stories, 3000 sq. feet and it sits on it’s own corner lot. The state it’s in is affordable and an awesome place to raise kids. It’s a small town though, so there aren’t a lot of great paying jobs in it unless you’re a farmer or rancher which I’m not. That’s why I left.

So we got the paperwork for the payoff and my son took it all to the bank where he is friends with everyone there. Because everybody knows everybody in that town, getting a loan to pay my house off was easy! I never once spoke to anyone at the bank. I didn’t have to go up there in person and all I had to do was fill out a loan application. Once that was done, I waited a couple of weeks and the loan papers were sent to me. I filled them out, got them notarized and bam! My house was paid off.

The loan was for $50,000. at 4.9% interest. I kept trying not to freak out while reading the paperwork and then I saw something that made me almost jump out of my chair searching for my phone. There is a balloon payment due in 2014 for $43,000. I called my son screeching into the phone…WHAT IS THIS? HOW am I suppose to do THAT?! he said, “Breathe Mom, just breathe, it’s ok.” Then he explained to me that he is confident that the house will sell soon, I pay off the loan immediately with the profit from selling the house and the balloon payment goes away. I had to ask…”What if it doesn’t sell?” He kept saying it will sell and not to worry. And if it didn’t sell, he would pay the loan off. That’s not happening. I’ll make sure that I can pay it off if it doesn’t sell.

Then he says…”You know…I think me and my wife just might buy it anyways.” HUH?! I asked him, “Are you serious?!” He said they are thinking about it. Once they had sold their own house they had moved to where my house is to talk me into selling it since they were right there. They are currently looking for a house to buy to be closer to what he does for a living. But he was looking in a town 4 hours away from my house up there. Now that he’s remodeled it and loves how it turned out  they just might buy it! That would make me sooo happy if they bought it! I would love to know that my son was living in it. We’ve had such great memories in that house and I’d love to visit them up there. He laughed when I said he can have it for $50,000. I’d actually just give it to him if he really wants it. But I know him, that wouldn’t be an option he’d take.

So this month is the first month that I don’t have a house payment! The first loan payment is due in Oct. I put the $527.00 house payment that I had been paying, in the bank this month. What a nice feeling! If he decides not to buy it, I’m sure I will be freaking out when somebody else does. But I’d also have to get over it. Memories are forever, right? Nobody can take those away from me.