Wrapping up MM101
[Graphic added by AJC]
I’m interested in hearing what other readers have to say about Ryan’s “upside down mortgage” … after all, that’s what we’re here for: new perspectives on age-old problems! Other than that, sounds like Ryan’s pretty happy with where he’s sitting … what do you think?
In wrapping up our discussion of MM101, Adrian has asked us the following questions to make sure we have properly vetted our current situation and are ready to move on the next step of our number journey:
1. What, if anything you will change in relation to your current financial situation?
If I could wave a magic wand, I would not be upside-down on my mortgage, but that will correct itself over time as we are not planning on moving soon. That (our mortgage) is the only MM101 related item we are currently dealing with and…
2. How / when you intend to go about it?
…while we could short sell the house and rent, we will not likely do that. We are emotionally tied to the house and would not, in my opinion have much upside with a rental because we would have to either float the note on our mortgage or pay the taxes on the difference on a short sale, all to pay MAYBE $1000/month less and not have the mortgage interest to write off come april 15th.
3. What results you are hoping to achieve?
An appreciation of our home of around 5%/year starting in 2010, bringing us back to an equity position around 2012.
4. If you haven’t specifically addressed debt in your response/s to 1. – 3. (above), what (if anything) you intend to do about your current debt?
BTW: if you are planning to increase/decrease your current debt via a debt snowball, avalanche, bazooka, cash cascade, all, none, or I don’t know … this would be a GREAT place to discuss it.