u/MrBallistik

Logged onto the website yesterday. Noticed I had a payment amount of $0.00 with status of "no payment due".

Received an email today advising the schedule to repay has been changed.

Logged onto the website. Received a letter explaining the potential reasons the schedule changed (deferment ending, forbearance ending, etc).

None of these apply to me that I am aware of.

The letter then states that my new monthly payment has changed. However, the "new" amount payment amount is the same as the current one.

Called MOHELA. Rep explained that when I recertified last year the repayment schedule was for 11 months rather than 12.

Apparently their system eventually caught this and I've been placed into a forbearance (although the website doesnt acknowledge that).

Rep couldn't comment regarding whether these months of forbearance would count towards my PSLF.

So... on the one hand I have some financial flexibility for the next few months.

On the other hand... wtf. I didnt have high confidence in MOHELA to begin with.

Has anyone seen anything like this before?

Looking for a CPA to assist with capital gains on the sale of a home. Please and thanks.

I'm preparing to sell a rental property in a high demand area. I would like to bypass a realtor and pay an attorney a flat fee to handle closing paperwork/title work.

I have two interested buyers already without listing the property (which I could do as FSBO on ZIllow and/or get listed on Redfin if I pay for an MLS listing).

What am I overlooking that would justify paying a realtor 3%?

I own a 2 unit rental free and clear. I've yet to have it appraised. However, Zillow estimates it at around $315k. It is in a high demand rental area. Highly rated schools. Low rental inventory.

After taxes, utilities, insurance, and setting aside $$$ for repairs I can net around $500/month.

That $500 had been going towards mortgage payments on my primary. NOT extra payments towards principle. Just the normal monthly payment.

The mortgage has 28 years left at 7%. Approximate balance of $410k. The wife and I would like to retire in 15ish years. There is no way we could pay down the mortgage in full as-is.

Selling the rental and applying the proceeds to the primary seems to make all the sense in the world. Multiple sources describe it as a "guaranteed 7% return" on the money.

The rental property isn't generating anywhere near 7% of $410k.

In theory, we can recast the mortgage, voluntarily pay extra on the principle, and own the home free and clear around the time of our retirement goal. Recast would allow us financial flexibility as needed when unexpected expenses arise.

Thus, we could downsize and buy our retirement home *without* having to sell the primary at the same time (which was a logistical nightmare when we bought our current home). We'd potentially have somewhere between $800k - $1.2million in equity.

Thoughts?

EDIT: There have been many valid questions on the numbers. One unit is substantially below market value.

Adjusting for a market correction I believe I could net around $850 per month (or 3.23%).

Even then I'm inclined to sell to focus on the primary. I appreciate all the feedback.

I own a 2 unit rental free and clear. I've yet to have it appraised. However, Zillow estimates it at around $315k. It is in a high demand rental area.

After taxes, utilities, insurance, and setting aside $$$ for repairs I can net around $500/month.

That $500 had been going towards mortgage payments on my primary. NOT extra payments towards principle. Just the normal monthly payment.

The mortgage has 28 years left at 7%. Approximate balance of $410k. The wife and I would like to retire in 15ish years.

Selling the rental and applying the proceeds to the primary seems to make all the sense in the world. Multiple sources describe it as a "guaranteed 7% return" on the money.

The rental property isnt generating anywhere near 7% of $410k.

In theory, we can recast the mortgage, voluntarily pay extra on the principle, and own the home free and clear around the time of our retirement goal.

Thus, we could downsize and buy our retirement home *without* having to sell the primary at the same time (which was a logistical nightmare when we bought our current home).

Is this a sound retirement strategy? A *safe* retirement strategy?

​

What are the odds that PSLF is done away with?

My understanding is that: (1) it was passed by Congress and thus cant be undone by executive action and (2) even if it somehow *were* undone that people currently enrolled would be "grandfathered".

Thoughts?