Posted on: 20th Jun, 2010 05:22 am
We have primary home in Chicago (principal bal about $550K, now worth about $480K because of market), investment condo in Sarasota which has dropped in value by over $130K since we bought it 5 years ago and we're renting it out for 1/3rd of what it costs us (we bought it for $430K, it's now worth about $300K) . We also have a vacant lot in Chicago that we bought for $176K 6 years ago, we've tried to sell it but have had zero offers because of market conditions. The lot is financed via a 2nd loan on our primary home. We have a second condo in Chicago which is worth about $300K (our principal bal is about the same) which we're renting out at $1750 which covers the mortgage and expenses--we haven't tried to sell this but probably could. We have obliterated our savings keeping up the payments on the Sarasota condo and can't sell it because the property is worth so much less than the mortgage. We have very high credit scores, no credit card debt, have 401Ks worth about $300K which we want to protect, are not late on any payments, but the Sarasota condo is doing us in, we're about to run out of savings. I don't think we could even qualify to re-finance our primary home mortgage in Chicago to take advantage of the current low interest rates. We don't know where to start to figure out how to proceed, and we don't know who to ask for assistance, so we're starting here. We want to keep our primary home. Thanks.
i would advise you to cut your looses or cut anything that is sinking your financially. the reason i say that is because the only way you are going to recover is if the home(s) appreciate(s), and since that does not seem to be happening at this moment and you are headed in a downward spiral, you might as well cut your losses by selling unless you are able to maintain those financial obligation, and even doing so you will still have to wait on the properties to appreciate before your can ever hope to recover. i would say sell the property, do a short sale, or get a deed in lieu of foreclosure. but just ship before you go under. now if you can still afford your primary residence then keep it, because you will always need somewhere to reside.