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With the current housing and credit crisis more and more people are finding that their homes are worth much less than they owe on their mortgage. I too own 2 homes and my main home that I purchased in 2003 is also worth less than it was worth in 2006 and also it almost getting to be the same value that I paid for it.  Now my other house that was supposed to be a super investment is now worth over 100,000 less than what I owe the bank. That home was purchaced in late 2006 and that is the reason for its failure.

You see true home values probably hit a peak in either late 2003 or 2004. Then every price after that was based on a fake speculation and the prices were pushed up too high. The prices never could account for a purchaser to have a positive cash flow by renting it out. This is where all the banks went wrong. They should have realized it back then and this whole mess would never have happened.

This is something that all of the great real estate gurus always tell you. If you buy Real Estate, always make sure that the rent that you can get for it is enough to pay your mortgage each month, this also includes the escrow for taxes and insurance. But we all did not listen to this advice. We just went out and got those mortgages with those 1 percent teaser payment rates because our Real Estate agents assured us that we could flip it in 6 months or so. I still remember that smile on my agents face.

And then the flip that never happened. It was not possible anymore. By the time I closed on the sale of this pre-construction home, it was already worth $30,000 or $40,000 then what I had paid. The problem is that none of wanted to admit it. We did not want to admit that we screwed up. So we waited longer and longer and now we are so deep in debt to the bank that we have 2 choices left. One is foreclosure and the other is for us to wait 15 years until the 2003 prices increase 150 percent - at 10% a year. So forget about it. What is better? 2 years of bad credit or 15 years of misery?

If you do a simple web search for Internet Marketing you will find Several different names like:

Sitepoint, Cody Moya, Derek Gehl, Majon, Courtney Tuttle, Jim Daniels,

SBI - Site-Build-it! or others.

There are so many of them. But which one is the best? Are they there because of word of mouth? Or is it because they pay for the Ad Words to get there?  I am looking for one myself. I want one that really makes their own money from Internet Marketing and Not from the Sales of their $200 kits. I am not willing to waste money on a SCAM.

I have a friend that bought one of those kits and he used it. He got some results, but not as much as they say you can. He also gave me the kit myself. I read it, but did not find much more than I could already learn by reading the 10,000 ebooks that I already own. The ideas are all there, but they do  not do it for you. You have to do the work and believe me it is time consuming, especially if you have to make multiple pages and proper links to each page.  You have to make a lot of content, or higher someone to do it for you. You also have to send lots of emails or spam! 

I am looking for somebody who will do it for me, but at the same time charge me based on results. So I would pay less in the beginning, but them more as I too make more money. These kit guys do not look like they would have the time to do that for me. But if any of you readers know somebody that does, I am all ears.

I have a site:

http://www.ibookcity.com

and I want to add 100 more ebooks to it. But it is too time consuming.

Have you seen the commercials for John Cummuta. He claims to have a system where your debts can make you rich. Well I have a lot of debt, thanks to my failed investement in Homestead Florida. I am looking into a way to get rid of my debt too. I have found that there are actually companies that do loan restructuring negociations with your Bank. But first you have to be behind on at least a few payments. So does that mean that I should ruin my credit? Hopefuly not.

I mentioned in another post about 2 weeks ago, that I feel like I should just walk away. But since that time, I have sent the $6200 check to pay for the taxes and $800 for another year of insurance. I am giving this deal 1 more year to get better. My plan is to keep my credit good, long enough to refinance my principal home. I am also waiting for 30 year interest rates to drop back down to 5.5 % and it is getting close. All we need is a few more bad stock market days and poor economic indications to be posted, mayeb one that says that we are officially in a recession and hopefully We’ll get the 5.5 percent rate to come back for one more time. I will be closing that very same day.

By the way I use this link to keep track of the rates:

http://origin.bankrate.com/wsj/graphs/graph_trend.asp?product=1&prodtype=M&ad=mtg

Once I get to refinance my main house then I will do whatever it takes to sell that other house. Either a Short Sale or a loan restructure. The way I see it, my option arm payment will eventually go up and I will have to miss some payments. When that happens I will be elligible for a loan restructure and the bank will have to right off some of lost equity or principal. Or I will Short Sale this house for a 100 K loss.

As for paying of all my other Debts in 7 years. That remains to be seen. The idea behind that program is simple. Get rid of or reduce payments one at I time. The less bills you have the more you can send to the principal and the faster you can get completly out of debt. I am not sure if I can do it in 7 years, but I will try.

What do your think is better for your credit? a Loan restructure or a Short Sale?

Please post your comments below.