I'm sure my story won't compare with most, but I need some advice so here's some background to work with.
I retired from the military 7 years ago and paid off my property a little over 5 years ago. My father owned 3 homes of which the largest was/is willed to me. My father proposed to me that my family and I move into the home and our part of the deal was to maintain/improve the home, pay the insurances and property taxes and normal household expenses. You know, power water sewer and so forth. Also I was to assist with labor only to help maintain the other two homes which I did. My father also promised that once the second mortgage was paid off he would place the home in my name.
Over the next 5 years I sold my original property for $47,000 dollars and reinvested it making improvements to the home, I also used 40,000 worth of credit card expense to finish all the improvements. After completion of all the improvements the home it was assessed at a value of $225,000.00 dollars. Up a 100,000 over the previous assessment.
My father paid off the second mortgage last September and then demanded I pay $1,200.00 a month rent plus all the other expenses. I advised him that there was no way I could put out an addition $1,200.00 a month in rent. What I could do was take out a mortgage on the home once it was put in my name and I would pay off the $40,000.00 of debt he had plus my debt and I would have a 90,000.00 mortgage to pay but the home would be in my name. No one would loan him any money due to his age.
We discussed it a few more times and he advised me that he wasn't going to put it in my name and I would have to pay the rent or get the F* out. Three days latter I received an eviction notice from his lawyer.
I liquidated my assets; about 10k, shut down my home business (since I no longer had a home) and moved out of state and are currently staying with my wife's family. After all that I didn't want to be anywhere near my family.
When I left I had around 57,000.00 of debt, which I have paid down to around 38,000.00 over the last 6 months. My wife and I have both taken jobs but we aren't making the money we were in Alabama.
My problem is to get back to were I was, I really need to re-start up my business but to do so I need a home with a large shop to work out of. But I'm afraid to apply for a home loan due to my current debt to income ratio. Were making together right now about $3200.00 a month and a minimum of 1,100.00 going out, but we've been paying out twice that to pay down our debt. Of course the rest is going to help out with household expenses with her family. I have 5,000.00 in saving I'm holding to put towards a house closing/down payment.
Most of my credit cards are below 16% I have seven credit cards, 3 of which total 27,000.00 and the other four total the remaining 10K. I have been paying off the higher interest rate ones first and could have the ones totaling 10,000.00 paid of over the next 6 months and start chewing at the others.
My credit is good with the exception of my debt to income ratio, I am waiting on credit reports to review.
The way I'm going it's still going to take two to three years to get back to zero on my credit card debt, and I sure don't want to stay with my in-laws that long. Don't get me wrong, they have been great! Treated me much better than my own family.
So I'm looking for recommendations to improve my situation.
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