Posted on: 30th Apr, 2012 01:04 pm
Hello,
I'm new to this forum so I apologize if I posted in the wrong place. Here's my situation:
In 2004, I purchased a small two bedroom, two bathroom condo (apartment conversion) in El Cajon, California for $290,000 (Current value = $136, 200). I knew nothing about mortgages (still don't) but from what I remember I went to this company to sign some papers, they looked like they were moving out and seemed to be in a hurry. After what seemed to be 80 pages of things I had to sign it was done- I had signed my life away.
Currently, I am married with one kid (who's 10) and make $72,000 a year (3800/mo take home after tax and 401). My wife is a stay at home mom. Here's how it's layed out for me:
1st Equity: Line of Credit (Loan 1 - $231,100)
2nd Equity: Line of Credit (Loan 2 - $55,577)
1st Loan Monthly = $636.91 - fixed interest for 30years at 4%
2nd Loan Monthly = $339.45 - variable interest at 7%
Both auto-deducted from my bank account - I haven't changed anything.
Property tax = $2600 /yr
HOA =$232 /mo
It's been 8 years I've been here in this dinky condo with thin walls and ghetto neighborhood. I can't help but feel that I've been spinning my wheels in a bad situation this whole time. One day, I want a home for my family but I'm not sure what I should do.
Does anyone have advice? I want to take the right action and I want to do it NOW so I don't waste anymore time.
Thanks for any advice you can give!
I'm new to this forum so I apologize if I posted in the wrong place. Here's my situation:
In 2004, I purchased a small two bedroom, two bathroom condo (apartment conversion) in El Cajon, California for $290,000 (Current value = $136, 200). I knew nothing about mortgages (still don't) but from what I remember I went to this company to sign some papers, they looked like they were moving out and seemed to be in a hurry. After what seemed to be 80 pages of things I had to sign it was done- I had signed my life away.
Currently, I am married with one kid (who's 10) and make $72,000 a year (3800/mo take home after tax and 401). My wife is a stay at home mom. Here's how it's layed out for me:
1st Equity: Line of Credit (Loan 1 - $231,100)
2nd Equity: Line of Credit (Loan 2 - $55,577)
1st Loan Monthly = $636.91 - fixed interest for 30years at 4%
2nd Loan Monthly = $339.45 - variable interest at 7%
Both auto-deducted from my bank account - I haven't changed anything.
Property tax = $2600 /yr
HOA =$232 /mo
It's been 8 years I've been here in this dinky condo with thin walls and ghetto neighborhood. I can't help but feel that I've been spinning my wheels in a bad situation this whole time. One day, I want a home for my family but I'm not sure what I should do.
Does anyone have advice? I want to take the right action and I want to do it NOW so I don't waste anymore time.
Thanks for any advice you can give!
Hi sdmods!
Welcome to forums!
You can list the property for sale. Once the property is sold off, you will have to pay off the mortgages in full. Then you can contact the local lenders for a new home loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can list the property for sale. Once the property is sold off, you will have to pay off the mortgages in full. Then you can contact the local lenders for a new home loan.
Feel free to ask if you've further queries.
Sussane
The current value is muc less than the mortgage balances.
You have several choices:
1. Continue to live where you are at
2. Short sale or give the condo to the bank
Credit will be such that you will have to rent afew years before you can buy agiain and get a mortgage
3. Rent the condo and use rental income to cover the mortgage payments as much as possible and buy another home if income permits
You have several choices:
1. Continue to live where you are at
2. Short sale or give the condo to the bank
Credit will be such that you will have to rent afew years before you can buy agiain and get a mortgage
3. Rent the condo and use rental income to cover the mortgage payments as much as possible and buy another home if income permits
Thank you John for your opinion!! :)