we have owned this home for a little over a year. we would like to get out of the neighborhood since we have discovered since moving here that it has a high crime rate. found this out from personal experience.
we still owe the orginal amount we paid on the home due to intrest only.
we were told by the guy who set up our financing that we could "wash" our mortgage and use the home as investment property by renting it out.
he wanted us to have the home rented before we even got a new home.
i suggested using the home as colateral or downpayment to secure a larger amount of financing to get a nicer home outside of town.
the guy said we could only find a home priced less than what we paid for this home which was $76,600.
I know from doing some research that in order to find a home for less than what we paid for this home would mean looking at homes in even more dangerous areas of town. example the projects!
I would like to know if i can use this home as coleral or downpayment to secure financing from a different company to get a better home in a safer area say in the country?
we dont want to rent this home out because we dont want to be stuck with 2 mortgages one for the current home and one for a new home.
if we can get a real estate investor to buy this house for what we paid for it or what it is appraised at would we get the money or would it go to the mortgage company we are dealing with right now?
need advice since this was a rushed purchase to start with and we dont want to get rushed like that again the second time around.