It’s not one minute… then the next… .

Look, this is in every major personal finance book out there.
Step 1: eliminate debt and balance the books
Step 2: build an emergency fund
Step 3+: buy stuff & increase emergency fund as necessary

Seriously, if you lose your job and can’t afford your next mortgage payment, then you have to dip into savings / emergency fund. If you don’t have savings to cover at least a couple of months mortgage, then you are seriously under-funded and can’t really afford your house.

You know that you can’t keep the plant from closing, so you have to start by protecting yourself. The emergency fund forms the basis of that protection. There are lots of little things you can do to help offset risks, but the emergency fund is your number one step.

If “one minute you have a job”, then “the next minute you lose your job and can’t make your mortgage” you have failed to protect yourself. You could have picked up basically any one of a hundred different personal finance books / courses. You could have read a few of the hundreds of blogs on the topic.

They all say the same stuff: Emergency fund / cash savings then big purchases. Many of the books / blogs also talk about managing risks. Home purchases are not just the biggest investment most people will make, they are also one of the largest risks people ever take.

So Angela, I do have some nice things to say. I’m sorry. I’m sorry this is happening to you, I’m sorry that we as a society haven’t pushed through the important message about personal finance management. In fact, I’m so sorry that as a US tax-payer (which I am), am proposing (via our elected officials) to help fund the homeowner affordability and stability plan despite all of the things I just said about it being your fault.

(me, I’m 29, make twice the median income for my region. I own neither a car nor a house, so you can see why I’m generally unsympathetic)

My blog has a post analyzing risk decisions in detail:
http://gatesvp.blogspot.com/2009/03/time-has-yet-to-come.html

I have a question and I want you to answer it honestly. If the “teaser rate” or arm was not available at the time of your purchase and you went on traditional financing would you have been able to purchase and reasonable AFFORD that house? I’m guessing , if you are like a lot of people, that the answer is NO. You simply bought something you couldn’t afford and when the TRUE payment kicked in on the investment, you are crying the blues and using every other excuse as to why to why you can’t afford your house. It is a “look what I got” mentality that lasted a couple years when you weren’t even coming close to being able to afford that house. As far as the other factors such as higher interest rates on your cards etc., they are a direct relation of this mess and your kind of irresponsible buying has gotten us into. Take some accountability and some personal responsiblity already. So you lose your house. There are greater tragedies in the world. If I bought a ferrari and it was a dollar a month for the first two years and then it went up to its normal payment and I could no longer afford it, would no doubt be reposessed. But I wouldn’t be crying that they took my Ferrari. I would actually be laughing that I manipulated the system enough to be able to drive something that I knew was above my means which is obviously what you did with your house. I do not say this to be mean, but I am so sick of people pointing fingers. Also your loan officer SAID he SAID, but you SIGNED!!!—are you kidding me, If I told you cows crap gold bars would you sign for one???? Let’s get serious. I saw your income and I have to say I make substantially more, but do I own a home. NO,,,,,,and do you know why,,,,,,,,because I KNOW I cant afford it. America is on Front street,,but all I have to say is “Look what you got now” crappy credit, and your hand out,,,,,,,,,,,,,,,,,,,,,PS. I would like to thank you as someone who has never been late on a bill in 20 years for my interest rates being laterally increased due to your irresponsibility.

There is no logical way out of this trap, though I understand that you are very angry.

The only good financial decision you listed was going through post-secondary education. Though you don’t list your degrees / careers and 55k combined likely means that you’re still both early in your career.

But let’s cut to the chase, why do you deserve a little help?.

Most people in the world are renters not owners. Why do you deserve a home of your own, when a more skilled worker in India is living in an apartment with their children and parents?

Most families in the world do not own cars, yet you each own one car. Why do you each deserve a car when the Chinese people making them cannot even afford one per family?

I have ALWAYS paid my bills ontime and in full
That doesn’t matter. The bills you were paying were obviously not enough or they wouldn’t be raising your mortgage would they? You just spent a few years paying the “teaser rate”, but the true cost of your bills were much higher.

Look, you made an unsound financial decision buying the home that did at the price and terms that you did. You pay taxes, but so do we, and I’d rather have my tax dollars go towards infrastructure repairs and better schooling for US children.

Yes it would be nice of someone to renegotiate your mortgage, but when you signed the paperwork, you took responsibility for all of these potential problems.
Yes you’re getting less hours, but that was always a risk, right?
Yes the home salesman lied to you wasn’t that always a risk? Have you pursued legal action?
When you signed the credit card statement, you knew that the interest rates could jump on you, right? It’s on the piece of paper that you signed, isn’t it?
Given that you’re only working part-time have you been able to find a different job to make up the hours? Maybe a different full-time job instead? Have you looked? Have you spent 100 hours looking?

…I am a immature stupid idiot…
It’s clear from your posts that you made some questionable decisions. It’s also clear that you resent your situation, but it’s obvious that you signed a lot of papers you probably shouldn’t have. Clearly you need to accept that you are responsible for the papers you signed. Maybe you’re just angry right now, but maturity and responsibility go hand and hand.

If it’s any consolation, lots of otherwise smart people made similar financial mistakes. Just because you made some poor financial decisions doesn’t make you a “stupid idiot”.

Why not look at this positively?

You’re making 55k, you’re both college-educated and you’re living in the US. That alone means that you can afford a nice two-bedroom apartment, a single car, good food and general quality of life that is nearly unparalleled any where else in the world. So all in all you’re doing all right.