Can’t say for sure about the two payments. Since I’ve been in RE, I’ve always made dozens of mortgage payments. To make only two at a time seems abnormal somehow.
Here’s something you might want to consider. I read a day or two ago that the FDIC is expecting the largest number of bank failures and REO’s since the days of the RTC. One of the primary reasons given is the failure of a large bank in West Virginia. All this was news to me.
My experience has been that I always make more money in down markets, not in hot ones. If you’re having problems with your house, maybe others are too. You may be turning your back on a gold mine.
Just a thought.
Yours,
Eric C
PS - the story was enough to make me look at flight schedules to WV. I mean, I’ve been through this all before – I know all those guys at FDIC,FBI,Treasury, IRS,… that’s gotta be worth somethin’, right?
I have recently moved from southern WV to GA. I have been thinking about RE investing for a while now, and even have a CS course gathering dust on the bookshelf (yea, one of those people that keep thinking “someday”). However, I have read enough material to wonder what the best course of action would be to resolve my current situation, which is:
I have already purchased a new home in GA, and to say that the local economy where my WV house is located has turned south would be an understatment. I have had only two offers during the last nine months, both of which have been about $25K less than what I have invested in the property. The first offer I turned down, but after paying two mortgage payments for three months now, I’m considering the second offer.
My question is this. Should I take the offer and stop the bleeding, or look into leasing out the home. If I sell, I understand that I cannot claim the loss for tax purposes. If I lease/rent, I believe that I would gain some tax advantages. However, my current montly mortgage payment is $850 and I will probably only be able to get $550 - $600 per month in rent.
The other consideration I have for keeping my former home and converting it into a rental property is the possibility of tapping into any potential equity (assuming the market makes a comeback)to use to acquire investment property here in GA.