I'm married here in Florida with a stay at home mom and a 3 year old son. I bought a condo for $300k that is now worth $155k at best. We live in that condo. My wife owns a condo that she paid $155k for that is now worth around $80k. Our mortgage + HOA fees on that unit run around $1,050 a month and we have a tenant paying us $850 (so we lose $200/mo on it). My wife's condo was purchased with county assistance before we were married--they paid $25k toward the condo and that has to be paid in full (even if we short sale) in order to get out.
We have roughly $40k in the bank without any debt other than the mortgages.
I make $90k/yr in my job but desperately need out. We need a house but simply cannot figure out how to escape this situation.
Pay the $25K to county and dump your wife's condo. That's step one and two.
You're bleeding money
I once sold a house, purchased with County Assistance, to a new buyer who qualified for County assistance, thus avoiding the Due on Sale. At the County, they may have a waiting list of qualified buyers. The tenant might qualify. You will receive nothing for your equity, but you will be out from under.
Ever considered providing your tenant or a potential tenant a lease to own option? So while it might still be hard to get back your $155K, it could stop the negative cash flow for the time being. It's hard to devise an exact strategy since I don't really know how much you owe, but that would be my first thoughts.
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