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Personal Finances / Credit Cards and Consumer Debt
|Subject: Duty Reassignment||Date: 2/1/2006 2:27 PM|
|Author: ApacheMech||Number: 219947 of 309251|
Greetings to Fooldom,
I just got ahold of some new orders. I will be going from FT. Carson, Colorado to Ft. Hood, Texas 3 months after I get back to the states. I do have a bit of a situation, though. I own my house and it happens to have a second mortgage attached to it. The principle on the first mortgage is what the house is worth (I just got it a year and a half ago) which is around $190,000. I have a couple of options:
1.)Sell the house and try to get some kind of credit to cover the second mortgage ($42,000). I have connects at a small town bank that I have the consumer loan with. I don't even know if my income will cover the min payments of the loans.
2.)I don't know the laws about this, but rent the house out and see if I can't float the 2nd mortgage until I can get the snowball around to it. I have the financing through the military and I don't know the clauses attached to renting a house through a VA Loan, but I will check on it post-haste. If anyone on this board knows about it, please help?!!?!?!? If I go with this option, I would have to set up a E-fund for the rent account to cover 6 months rent just in case of vacancy. I will probably have to put off the snowball until I get that amount in an ING account or something. I will also have to hire a manager for a percentage of the monthly rent (I have six houses in TX that are run that way) The six houses in TX are trailer houses in the clear, but making nothing because of their age and the repair costs and the area they are in. FYI, are nowhere close to Ft. Hood. If I do this, I will be earning equity on the house until I get back to Ft. Carson or until I decide to sell it after I pay off the 2nd Mort. I also see it as potentially a source of income after the mort. is paid off.
I am leaning towards the latter because it is the only one that looks like it would work. Does anybody else have any ideas. Thanks for the time and patience.
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