I had a chat with a great lender over the weekend (yes, with you in mind).
Here's the problem, your daughter essentially can not use a renter, neither on a VA or a FHA will allow it on the loan, and those are the low down options in town... if there was an option for bigger down, there might be a conventional loan program out there, however... we are talking 30%+ down...
You my friend are still too close to the fire to buy anything - but it leaves us with treating this as an investment. First, find out what your local market is doing with your Temecula CA Market Value. Don't worry, if you don't live in Temecula, you can put in your zip code and see your local value.
Considering that you owe well over $500k on an asset worth about 200k. It really become a question of how long you want to keep tossing your savings into the sinking ship.
Your negative equity is over $250k
Regaining equity position in the property could be 20 years, even if the market get really bullish again.
With a $250k loan you would pay about $1350/ month, that is less than half of your current payment.
Repositioning can take place roughly 2 years after closing a short sale (Different factors may apply - call me), we have predictors showing market value increases around 1% annual for the next few years, meaning you will still have low prices when you can purchase.
Based on this data - I think it is prudent for me to say that you need to get out of the property one way or another, yes, I know you are thinking about that, and it may be time to get more information on that Temecula CA Short sale.
If you do a short sale, remember that you can stay in the property until it closes, even if you do stop payingI had a chat with a great lender over the weekend (yes, with you in mind).
Now that you have an idea - goto my web site and see what your market value is.
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