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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.

I am sure I am not the only one who is asking this question. Should I give my failed investment property back to the bank? I have 2 houses: One that I live in and the other one that I bought from a greedy Home Builder as an investment. This builder must have made killer profits. They even invented an extra tax call CDD.

This is for the Waterstone Community in Homestead. I have to pay an extra $1500 a year for this tax.  This is the South Dade Venture Community Development District (CDD) I think this tax should be illegal. If anybody knows a way that I can out of paying this tax. I will pay you money! Please let me know.

Well here is my situation I am loosing about $200 a month on negative equity. Also I do not see the prices in the area rising for at least 2 or 3 more years. I also have to pay over $6000 taxes a year. Part of this is the CDD tax.  I payed over 300 K for this house and it is not even worth 240 at present. So I lost over $70,000 already.

I am expecting about $5000 Federal tax refund this year. Instead of enjoying this money with my family. I will have to use this to pay my tax bill prior to April 1st 2008. I have a wife and 2 young children. They are the ones who have to suffer. We have to live like poor people. Sometimes we do not even have money to buy extra food or gas or even to eat out. But in reality I make a decent income, but it is jsut not enough thanks to this failed investment. I also have a high FICO credit score close to a 780. But is it worth it? 

Now I am trying to convince my wife to just stop paying the mortgage for this House. She thinks it is unethical and that it will ruin our credit for a long time.

We still have our primary home and it has a lot of equity. We can quickly refinance that one and lock in a low 30 year fixed rate of 5.9 percent, so this way any future credit score status will not be able to affect us. Or can it? I really need to know.  I also enjoy cheap auto insurance and a zero percent credit card, due to my excellent credit. But I am willing to sacrifise that if I can know that my credit will be restored in about 2 or 3 years. Is that the time frame for a foreclosure? I don’t think my bills will go up over $200 a month or will they?

Also consider that this is my second home? Won’t my good payment history on my primary home and all of my other bills, out shadow this?

I really need to know. And if nobody can answer these questions. Please just post the name of another blog or forum that can help me. I need to know this before I waste my money on that stupid tax bill.

Thanks in advance.

Please post your comments below.

If you are reading this post. Do not feel alone. So many people bought over priced homes from builders between 2004 and 2006, and now they are stuck with them because they are impossible to sell, unless you are willing to loose at least $75,000 or more. I know this is true, because I did it too. I bought a house in Homestead Florida and you can even see some pictures in my previous postings.

Well the reason for this post is, that I am wondering if anybody can help me to sue my builder or bank for having granted a loan for such an over priced property.

One idea is: Why can’t we force the builder of new homes to take back a house that they know was sold at an overpriced value. 2 years ago, I bought a house from Prime Home Builder in Homestead Florida. They sold me a house for over $300,000, but the real price should have been no more than $200,000 and even that may be too much. Well they somehow persuaded my lender to give me a $260,000 loan to buy this house. So why can’t we force these builders to take back these houses 2 years later, even oif they give me only $260,000. they can keep my deposit. But since average sale prices are about $250,000 K and nobody is buying they should be forced to buy it back from me. They were the Scammers! I also was tricked in to paying the builder almost $25,000 in bogus closing costs. 

But first I need to know if the laws are in our favor or will the government that writes these laws favor the big builders instead. If I find out that I can start a class action law suit. I am sure many other victims will want to join in. So let me know what you think about this topic.

As the owner of 2 properties that have temporarily frozen in  value, I too have decided to get rid of my teaser mortgages and so I have refinanced them and now I pay at least the full interest payments on my loans. I noticed that even with all of the recent crackdowns in the mortgage industry, Life still goes on. And we are not having a Real Estate bubble!

Homes are still being sold for more than the owners paid.

The profits are not as exagerated as they were 3 years ago, but I have the confidence that the market will continue to move up slowly perhaps at a 5% per year rate

But that could still make you 20 to 25 percent in less than 5 years time.

Now what is happening is that all of those Mickey Mouse Mortgage companies and brokers are going down. They used to approve anybody, using dirty tricks, fake pay stubs etc. Now I am glad that the Banks are cracking down on all of this Fraud. And the truth is that we all should make money honestly and this world would be a much happier place.

Today I was listening to a morning show on the local coast fm radio station. They were discussing the topic: If you were on a jury, would you be able to vote the death penalty for a mentally challenged person?

Some people who called in to the show, and they agreed that if somebody is found to be mental challanged, well then he should be sent to jail instead of be served the death penalty. This issue centers around the recent jury conviction and sentence vote for John Cooey to get the death penalty.

This creature and his conscienceless lawyers are trying to use the mental retard defense, by giving him the chance to take an IQ test – After he has been accused of the crime.  This gives him and so many other criminals a chance to pretend that they are retarded and use that as a free ticket to a cozy little mental hospital where they can suck up another $50,000 a year of our taxpayers money and be given free drugs for the rest of his life.

What disturbed me is that one the talk show hosts: Tamara, was agreeing that if this jerk failed the test, then his life should be spared. She is evidently a liberal, who enjoys seeing taxpayer money get wasted on useless individuals.

I wonder if she has ever considered the fact that it is so easy for a person to cheat on a test like this, especailly if they are afraid of getting put to death. Also if this creep gets his life spared, all the other perverts and killers are going to cheat on their IQ tests, and claim to be mentally challenged, so that they do not get the death penalty.

What should be made to a law, is that no IQ test results should be considered unless they were taken may years before a crime was permitted and the person was already being treated.   
Lord have mercy on this sick world. 

Oh Yes: the ACLU is against the sales tax increase in Florida. 

The main reason is because the ACLU is supported by a bunch of lazy people and illegal immigrants who live off of wellfair. Most of these people do not even own their own homes. So why should they care about reducing Propery Taxes. These are the same people that are out to ruin our country in every way possible. These selfish people want to feed of us hard working tax paying citizens. They claim to be a minority, but they are actually a majority of them out there. If you ever go to their neigborhoods, you will see that, even though they live in small apartments, they still drive late model cars, they only wear designer clothing. 
And they only buy name brands food products at the local super market.

Now what can we do to prevent this? Well first, do some research, go visit a local Government Childrens and familily office or governments housing project and look for yourself. Look at their cars, and look at their clothing. If these people are really poor, than how do they have all of that stuff? 

So even if you are against the Iraq war politics, and you may think that by voting for a Democrat like Hillary Clinton or the other guy Borack Hussain Obama, think about this. They are all for the ACLU and if they win. All of us hard working legal Americans will loose our rights, we will become the new minority and they will live happily off of our high property taxes money. they will have more babies and get more free food stamps.

So if this is what you want, go ahead and vote for them. they may even take away out freedom of religion.