CNN reports that, by year end, 1/3 of the homes in the market will be homes in foreclosure. I'm so fucking screwed.

So, here's the situation. I put my FL home on the market in July 2006 and bought my home in MI in August 2006. I used the equity in my FL home to put 20% down on my MI property. The FL home is rented but, between the community fees, the gap in the rent to mortgage, and the equity line, I'm losing $1,000/month on FL.

Right now, the price on my FL property is 13% less than I bought it for. It's still priced 16% more than I owe (because I put 20% down on that first home) but it's priced as low as I can take it without having to pay for the loss out of pocket once you factor in real estate broker fees, taxes, closing costs, etc. (It's a given, at this point, that I'll lose the money I initially invested.)

The tenants are interested in buying but they can't get a mortgage.

Last week, I made the decision to put my Michigan home on the market. The thought of selling the home I'm living in because I can't sell a home I'm not living in is depressing but, at least, I'd only own one home. And, quite honestly, mobility is important to me. I have no intention of leaving A2 any time soon but, if I lost my job, I'd be unemployed, forced to leave the area, and have two mortgages to pay.

So, I have an appointment with a real estate agent tomorrow afternoon. What he told me is what CNN is reporting but with the downstream impact on me: with so many homes in foreclosure selling for less than they're worth, most buyers aren't even looking at regular sale homes. To sell my home in MI, I'll certainly have to sell it for less than I bought it for and, possibly, less than I can afford.

The other snag in all of this is that I never planned to stay in FL for long so my mortgage has a 5 year adjustable rate. The five years is up next October after which I surely won't be able to afford both places. Next week, I have an appointment with my bank (who has both mortgages) to see if there's anything we can do. I may have the option, for a small fee, of converting the FL mortgage to a 30 year fixed rate but we have to look at my mortgage documents to see if that's written in. What I really want, though, is approval to short sell the FL (or even MI) property. If I can price the property for less than I owe, I'm nearly certain I can sell it.

I really need to stop thinking about this stuff in the morning. It's a terrible way to start my day.

If you made it through all of that, here's some shiny news for you: Borders is having a big Buy 2, Get 3 pre-holiday sale today through Saturday: B2G3 on the entire stock of calendars, the entire stock of DVDs, and the entire stock of mystery, thriller, romance, sci-fi, fantasy, graphic novels, and manga books. No coupon or Rewards membership needed.
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