We are broke and I don't know how to fix it. - Page 2

[mnnice]

Honestly, if you haven't done any major "harvesting" of equity to date your are not in too bad of shape if you just sell both places. (Provided the estimates you have gotten are reasonabily accurate.) You should have cash left over after paying the mortgages and still have intact credit and not have the day to day hassle of keeping the places rented. 

Your current cash flow completely stinks however.  I would look at it has you have an income property business that is undercapitalized.  Businesses fail every day because people need them to generate income right away and are not in the position to wait until its profitable down the line.  I think I would make it clear that you "get" and respect DH's idea that the CA house might be a fantastic long term investment, but that it's sort of irrelevant if it sinks your finanical boat in the short run.

Originally Posted by Faliciagayle 

Originally Posted by GuildJenn 

I also don't quite know how foreclosure, etc. works and hopefully people know more but would it be possible to walk away from the condo and keep the house? 

I have been trying to talk to a RE lawyer to find out for sure, but from what I understand, since the mortgages are held by two different banks, no they cannot go after the house.  But we need to find out for sure.  That's a good suggestion about projecting real numbers into the future.  I think both of us suffer from taking the abstract knowing and making it concrete.

Found out that the house is worth (according to a website) $406,000 (he bought for $250,000) and the condo is at $73,000, we paid $160,000.  

[texmati]

are you living in the (non upside down) house? I can't imagine that they'd let you keep one and not the other. At the very least, the bank will put a lien on the house preventing you from profiting from the sale.

[laohaire]

mint.com isn't perfect, but what things are you trying to make show up differently? Maybe I (or someone else) can help. If you're referring to a transaction being categorized differently than you want (like you shop WalMart for groceries but it is showing up under Shopping), you can click Edit Details under the transaction, change the category and check the box that says "always categorize WalMart as Groceries" (for example). Or if it's something else, just let us know.