I'm guilty as charged... now need help from real pro's


Posted by flex on October 16, 2007 at 02:42:57:

Okay no need to state the obvious.. I fudged up
So I have a house in northern CA that I am currently renting out for less than what I owe monthly with taxes and insurance.
With what I make per month and with the credit cards mounting as well as my car payment, I don't know what to do.
I'm around 3K negative each month. I'm looking at selling off a land asset I have but all that will do is pay off some credit cards and still leave me with debt to the tune of around $2300 per month neg.
Tried to sell the house before I rented it out to help reduce monthly losses but there was no traffic to the house (even on current houses in foreclosure and SS). The renters have only been in the house for 3 months. I'd hate to kick them out due to me having to short sale the house even if I could

Thinking of just walking away and using the monthly cash to help pay off the CC bills as well as make the car payment. I have a 401K that I'm worried that they'll come after

I have enough money saved in the bank to last me around 8 months of negative losses and after that, I'm screwed again.

I'm thinking of just letting the house go to foreclosure since it's doubtful that they'll go after me on my first and second since they're both with the same lender. To top things off, my tax bill just came in to the tune of 6K due pretty much now. I just worked so hard to pay off that CC too!

I know I can do the obvious with the SS but I don't know how that works with renters involved.
Foreclosure will kill my credit but the way I acted lately, I don't think I deserve any new toys so I shouldn't need new lines of credit
Pride... I'm here so I've swallowed that along with some humble pie

I am trying to be good.
I'm in the process of doing a lease assumption for BMW #1
Looking at trading in or selling my BMW #2 and paying the loss off the car with a CC but losing a $900 payment in the process
Selling a paid off SUV and driving an old POS truck to work
Selling my land asset and using it to pay off some CC's


Any thoughts?


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