Posted by Max-Va on May 21, 2006 at 19:28:13:
There are alot of options. I won’t even offer advise. I will ask you a couple of questions.
A 1031X will not solve your problem I don’t see how.
Do you have positive cash flow?
Is it enough to make the additional payment?
How is you market? Appreciating, Flat or Declining
What does your credit score look like?
What are your job prospects?
How long before you find work to support yourself?
I assume you have no cash reserves for unexpected repairs.
Are insurance and taxes being paid and current?
You need to consider all these factors, and more that I can’t think of right now, to make a good decision.
With alot of debt and no job a No-Doc loan would mean high rates and effect your cash flow.
Use Equity for Debt paydown? - Posted by Teri Hacker
Posted by Teri Hacker on May 21, 2006 at 18:36:42:
Hi. I am recently unemployed. I have lots of credit card debt and school loan debt. I am having a hard time landing a job. I have a rental that pays for itself. I am lucky enough to have atleast $100,000 in equity.
My quesiton: I really need to get rid of some of this debt and I am not sure how to use my house to pay some of it down. Should I refinance? Should I get a second mortgage? Should I do a 1031x? I really don’t want to sell the house. Any ideas? Thank you for your help in advance. Teri
Borrowing more is not debt pay down. - Posted by John Corey
Posted by John Corey on May 22, 2006 at 06:10:07:
Teri,
Max covered the topic pretty well. He is correct that the 1031 is not really going to help.
Work harder at finding a job. Even if it is a part time job outside of your field. Income is income in the short run. If you apply for a loan and are not working or have changed fields it will be hard to be approved.
You did not say what you do so I can not offer specific job advice. Take a look at www.linkedin.com and other sites as they are helpful when networking for a job.
John Corey