Friday, April 19, 2013

Who is assured of this insurance?

A house update.  My current residence will officially need to be vacated by early May.  I was really hoping to do a leisurely move. The kind of move where contemplation on how to start takes a few hours and then it’s time for lunch.


Initially the close date for my house was going to be April 17th.  Then I got a call from my mortgage company. Evidently the loan I applied for is being withdrawn because one of the two mandatory appraisals came back low.


However, the mortgage broker, who is fabulous, had some good news.  I initially didn’t qualify for a conventional loan because they were not willing to consider the money I get from renting the Utah house.  (I’ve given up trying to pretend that the process is logical.) But, because the IRS considers the rent as income, the bank will reconsider it. Fantastic!
The mandatory mortgage insurance on a conventional loan is almost half of what the FHA loan requires and I’m all about NOT spending money on things that protect the one percent from losing their bonus money and at the same time has no benefit for me. 

However, the IRS edict that my alimony is a taxable income still isn’t good enough for my bank to consider it. I wonder if the reverse would be true.  Explaining to the IRS that another financial agency refuses to acknowledge my alimony as income and therefore they cannot collect taxes on it.  I’m sure the response would be a heart-felt apology and as a courtesy, a few years exemption from paying taxes. 

A side note.  In Utah, I finally built up enough equity that I had the Mortgage insurance taken off of the Utah house. (Only to have it smacked back on when I refinanced.) Mortgage insurance can’t be all that fabulous. First of all, it didn’t save our country from the last housing bubble.  Second, since it’s a requirement of home ownership, shouldn’t it also protect my credit?


But because I’m only a person entity (with a little p) and not a Person Entity (with caps) or a Corporate Entity, it doesn’t appear that I’ll be able to purchase myself a Senator.

It appears that I am stuck with all the rules and none of the benefits.  

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