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I Need to Salvage Myself if Possible

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Thread replies: 17
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I am 53. Dropped out of HS, never went to University.

I have been self employed the past 20 years.

I bought a small condo with some inherited money paid d in full.

Condo is my only asset now valued for taxation @$105,000.00

I have a $50k home equity line of credit on it of which most of it is used.

I am about to complete substantial refurbishing of this unit and desire to sell.

I have a around a 722 credit score that has been as high as 768.

I have about $40k in credit card debt

I currently have only the self employment income which grossed last year $38k.

I receive some Social Security which is means based and due to the form of employment I can take deductions which push my Net to under $1,000/year so I qualify for the Social Sec of just under $9k

My idea is to sell this condo and use as much of the residue to buy a property which will eventually allow me to use it to purchase another income property and build equity from rent till I can use that property to buy another income prop and so on.

I recently tried to refinance the Home Equity line after this property value was raised from $74k to $105k.

This was declined . Reason was debt to income too high.

If I sell the condo do I have to pay the existing Home equity balance off asap?

Can I carry that and use 100% of the sale proceeds to finance a new home with a higher value (providing I can get a mortgage) or is the Home Equity Line tied to a lien on the Title?
the HELOC will be paid first when you sell.
I asked a bank rep how that works..

If I need to have one of them present at closing like and they get a check first. they said no , I would just pay it at some point.

So that suggested I might be able to keep it open if I maintain the interest only payments

I will call and ask them but I am really just trying to develop some strategy or plan to try and get myself some more substantial income for the time I can no longer rely on my own efforts to work.

Time really does fly
what do you do to earn your self employment income?
the bank holds a lien on your title, you can't actually sell the house without paying them.

they don't need to be present because the title company will take care of paying them at the time of sale.

are you able to hire an employee to do your work and then get more work? That's an easier strategy than buying rental properties after years of minimizing your income for taxes.

Started with a Van in 1995 have been doing it right along then started using a sedan in 2006
I don't see that as a propfitable strategy since I am a delivery service.. gas is a killer and my social security essentially pays back the cost of buying the gasoline.. another employee would have that expense and the commission is 56% of the charge which is around $2.00/mile
another idea is to get a bank to look at your gross, if it's a lot bigger than net.

I'm in the same situation, I own a business and claim too little income on my taxes to get a loan.

I've gotten banks to look at my gross instead of my net before by pointing out that I'll be servicing the mortgage out of my gross.

this works since I usually gross over $250k per year and I write off part of the home for office/storage use.
ok, makes sense.

in that case real estate is probably going to be your best bet. I'm not sure it will pay off before you retire is all.

also in my state at least owning any real estate other than your home will disqualify you from SSI/SSD.
I did that recently with the refi request

I started the process over the phone and by email .. after it was declined I went into a branch and an associate tole me he had a good relationship with an underwriter and would forward my 1099's and social security declaration so he could see I do have more of a cash flow but his reply was my income is still too low in relation to my existing debt ..

I even suggested I would agree to paying off the existing $50k line balance due from the refi line and close out the original line so I wouldn't have so much debt..

I have yet to receive the letter which I was told was sent on Dec 29th so I'll stop in and ask for some more details but I did use that approach and it doesn't appear to have worked which spooks me about my prospect for getting a mortgage if I sell this place

In 2001 I obtained a pre-aproval for $135,000 no income verification/no-documentation loan but it was @10%..

I didn't use it opting to use the inherited cash to buy this place in full. At that time the soc sec literally paid for all my living expenses arising from the home ownership;condo fee, property tax, utilities, insurance and even cable.

Those costs have all exploded and I no longer enjoy the location so I want to relocate anyway..
I am prepared to work as long as I am physically able.

I accept I can't expect to retire at will due to my choices in life.
Yeah, I've done no-docs in the past at 8% and higher.

not sure what to say, it's possible you won't get another mortgage even if you sell and pay down all your debt. It's a hell of a thing.
>will disqualify you from SSI/SSD.
I am aware of this as well but if my income can pay the mortgage I'll get by as long as I can get a mortgage and eventually use it to springboard to more rental income

I know I blew an opportunity or three here.. I used much of the HELoC to pay high interest credit card debt after interest rates more than doubled in 2008.

I should have used the HEq to buy more real estate then now I can't get any more cash without selling this place..

I desire to relocate to a quieter location but if I can only do one or the other ; buy an income property (losing soc sec) and rent an apartment while building equity to buy more and not relocate into a new home I purchase and build equity on that to eventually use for other purchases I'll see about that..

After having owned my own place for 16 years now though the idea is revolting..
>you won't get another mortgage
would you say my age @ 53 is a factor in that? Isn't the 722-768 credit score worth anything?
are you able to get a better paid job?
it seems if you're willing to drop the SSI to make more money, that would be the most direct route.
your age is a plus, and your credit is fine.

as you say, your debt/income is the problem.

even if you pay off the debt, your income is probably going to still be a problem.
Lets say I am open to the possibilty but in the 20 years I've been working as a courier encountering myriad different businesses I have not found my way into anything which at the time could have paid me susbatntially more.

I am not unintelligent but lack verified qualifications.

The last thing I have on paper for any kind of record aside from tax returns is in my Junior year in HS I scored in the 98th percentile on the PSAT and that after imposing on myself a time limit not part of the testing.

I put my pencil down each of the five test days first hours before most others and still placed in the 98th percentile.

I did however walk out of the SAT and never took it..

Just say all that to say I am aware there are many ,many more people in the job market much younger with much firmer documented abilities..

I am not hopeful I c an find an income substantially greater than what I have now however willing or able I am.
Thread posts: 17
Thread images: 1

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