Sitting On A Gold Mine...
Hello Everyone,
This is quite an active group here! My soon to be ex-wife and I bought the house we are currently living in about 3 years ago from a friend. It is one of those fixer uppers. It's in a great location. Fixed up, I'd say we could sell the house for around $300K+. We owe about $133K. Initially, when the rates were at its best we were going to do a cash out refinance to fix up the place and use the rest of the cash to invest in other properties. But due to unforeseen events we were not able to accomplish this task. She ended up getting laid off from her job and ended up filing a ch. 7 bankrupcy. She is currently discharged but she still owes the trustee about $4200. I believe, she needs to settle this amount with the trustee before she can sell the house. Otherwise, she'd end up having to pay the $30K she wrote off in her bankrupcy with the proceeds from the sale of the house. My wife knows a real estate agent who would buy the house from her for about $220K as is. We'd end up splitting the proceeds from the sale 50/50 between us but I want to stay in this house and rent out the other 3 bedrooms in the house and get a steady income coming in. I'm sitting on a gold mine and I can't even touch it! Am I overlooking something? My credit score is about 520 and I'm currently working with my creditors to bring my payments up to date. Any suggestion would be greatly appreciated.
Yeah, possibly.
It sounds to me like you're sitting on a keg of dynamite. Sell the house for a profit, dump the old lady and her problems, pay off your debts, and go on with your life.
Put the house on the market. If you can get 300K for it, that's about 60K each. She can pay off her old debts and cancel her BK. Life will be better for her and for you.
Pay off your debts with that cash.
If you want to do some serious investing, you're going to need access to OPM. You are NOT going to get it with a 520 score.
My advice: Get your own ducks in a row. Meanwhile, educate yourself and keep your load light.
Just my advice.
Ronnie