I purchased a condo about 4 years ago. After owning it for about 1.5 years I bought a home and moved into it and rented the condo. So I have two mortgages, one for the condo and I owe $193k on it and my monthly payments are $1819, and one for my home which I owe $188k and pay $1343/month. I tried selling the condo for 6 months in 2007 (listed at $215k and lowered it to $199k) but had no buyers so I rented it again. I am only getting $1500/month from the renter and having to cover the extra costs. The condo mortgage is a 3 year ARM that has already reset and is currently 5.75%. Last years tax assessment value on the condo was $179k but this year it went up to $245k! So the condo is going up in value. How can I get rid of this condo? My renter is moving out on Feb 27th. I can't afford the condo anymore. Thanks!
2007-11-03 07:28:58 · 4 answers · asked by mattwilson99 1 in Business & Finance ➔ Renting & Real Estate
60% of homes on the market right now are investor properties. And people with ARMs are going through foreclosures left and right.
So, basically, you should have made better decisions in the past.
All you can do now is try to rent the condo again or sell it and lose money.
2007-11-03 07:51:16 · answer #1 · answered by monicanena 5 · 0⤊ 0⤋
Your tax assessment on this property does not necessarily equate to current market value. Your situation is not uncommon right now. You have converted your primary residence (the condo) into an investment property. Right now you are in a losing investment with that property. All you can do is tough it out and continue to make up the shortfall, or let it go to foreclosure. Neither is overly attractive, I'm sure, but those are your options.
2007-11-03 07:59:35 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
Move into the condo and sell your house.
2007-11-03 08:12:19 · answer #3 · answered by StephenWeinstein 7 · 0⤊ 0⤋
Call Dave Ramsey's financial talk show. He'll give you some good advice.
2007-11-03 09:57:21 · answer #4 · answered by colorhappy 2 · 0⤊ 0⤋