South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-05-05
Real Estate News of Interest to Home Builders

simply this: Half the house on all
sides Of our lot had been built
through a building and loan asso-
citation, in which these people were
members. IL was just made up OF
people in our town, whom we near
IS all knew. and found that Jim
Forbes. the manager Of the office at
the plant, happened TO be the secre-
tary. He told me that they would
have a meeting a week from that
"Wednesday, and for Us 10 come
along and see just what could be
done. He was anxious 10 help
However. l thought 1 would have
the man at the savings bank tell me
about this new proposition again.
lie gave it his o. K.
Now the wife and 7 had figured
out that house which some friends
Of ours had built for around $4,000
would just about suit US, both as to
style and price, and when / talked
10 Forbes OF the building and loan
association he told me that IL / were
TO put a house like that on my ST.
200 lot. making a total figure of S4,-
400 in all, the association would let
be have up TO S3,SO0 if l wanted il.
but he advised against drawing any
more money than actually was re-
quired. So we compromised at the
$1,000.
Forbes then told me: You will
pay $500 a month TO the associa-
ton. This viii be for interest,
principal and everything else You
viii have TO pay a small premium on
your loan when YOU get il, so tina;
your first months payment will run
as high as sixty dollars
This looked pretty stih. and l
feel sure we could not have made
go Of IL. but my wifes brother John
was making his home with US. and
paying $500 a month. / know this
doesn't seem much. but ne was very
handy about the place. always fixing
up this and that and the work he
did was easily worth $500 TO any
body
That night, after we had talked
IL over, and secured Johns promise
TO see US through. by coming to live
with us at the new home, when we
had il built. I decided to have
Forbes propose me as a member of
the association. undertook TO take
out sixteen shares Of their stock, par
value $500 each and which we
would undertake 10 begin to pay for
Immediately at the rate of $50 a
month. This would give the $4,000,
and l was surprised 10 find that we
didn't have 70 have il all in the
bank when we began to build.
Well. five months later the house
was finished. and il was examined
by the association and appraised at
about $500. / was instructed by
Forbes that / could get this money
wanted at the next meeting OF the
association, as there wasn't a great
deal Of building going on. and there
would be few borrowers.
AT the next meeting, then, l got
the S3.2OO BY bidding. as they call
ed IL, onehalf OF one per cent pre-
MUM. That meant that l paid a
premium OF $500, and the $3.2O0
was mine. TO be paid back. including
interest at 6 per cent, at the rate of
$500 a month. You understand,
Of course. that these monthly pay
ments were not really "a paying of
Of the loan, but were the continu-
out instalIment payments for the
sixteen shares OF stock in the asso-
citation. Just how long it would
take for me TO DO this. Forbes
couldn't say. as if the profits on the
sixteen shares of stock I had in the
association were large, il would take
probably ten years or less, as against
twelve or fourteen years if the
profits weren't so great. The idea
was that whenever my monthly pay
ments. together with the accunulat-
ed profits amounted to $4,000. the
stock would be fully paid. the loan
would be cancelled, and we would
| own the house free and clear.
TT seems harder telling about 1t
/ this way than il is. A lot of times
/ I've wondered IL il was worth while.
/ We've had TO scrape a little. Haven't
/ been able 10 get all we wanted to,
either. sometimes. in the way of this
/ and that, but things are picking up.
I Last year. for instance, we lived Off
I our little garden in fine shape, and
although John volunteered and is
/ now with the army he built a little
/ garage to one side that is steam
/ heated in winter. and which brings
/ in abou' $500 a month. and did a
\ lot OF things about the house, which
/ have added to its value. And we've
about $1,000 in the savings bank,
10 boot.
U