Q: Hi Bob, I am a 40-year-old woman who bought a three-bedroom, 1,467-square-foot, basic 3/2/2 Hanson home in February 2005 at $210,000 and put 10 percent down. I am in the southwest area of Cape Coral. Countrywide financed a first mortgage of $168,000 and a second for $20,000. Here is the problem, I have a pay option jumbo ARM mortgage and I am paying the minimum, so it is a negative amortization thing going on by about $500+ monthly.

This house was bought as a second home, my primary mortgaged house is in Massachusetts but I am living here with my three school-aged children, not in Massachusetts right now.

We have paid the minimum $1,220/month on the first mortgage and $200/month on the second mortgage on time for three years. I have put over $60,000 into this house and my mortgage is higher now after three years than when I started.

I still have a decent income, but why keep paying when I see my identical home with one more bedroom and 300 more square feet for $73,000, foreclosed and ready to sell, in about 500 foreclosed listings here in Cape Coral weekly.

Is my credit score worth $130,000? Am I throwing good money after a bad investment? I spoke with Countrywide and they are not willing to do anything. I may never see what I paid for this house for the next 15-20 years. I am not homesteaded as it’s a second home, so I get no tax-cap relief either.

On top of that, the city has water coming down my street and that will add $20,000 to my tax bills and I have to shell out $6,000-$7,0000 for hookup.

I spoke briefly with a Realtor about trying to sell the house, he said they would list this house at $129,000 and it would get offers in at around $90,000. I owe $205,000. What would you do if you were me?

Up Against a Brick Wall

K.C., Cape Coral

A: K.C., I can’t put my advice in writing as you can figure out, but I think you answered your own question, is your credit worth the $$$? It will (if ever?) not be worth what you paid for it in 2005. Sorry, but you asked.

Thanks, Bob. I needed an honest answer/opinion. You have a great column. I love reading it.

K.C.

Q: What is the best way to set the selling price on your home?

Richard P.

A: Dick, probably the most dangerous way is to do it yourself. The asking price is, by far, the most important past of the selling process. You need expert input.

We offer a Comparative Market Analysis (CMA) to help evaluate your property. We walk through your house with you, perhaps making suggestions about selling points that should be emphasized or minor changes that will enhance the sale.

Then we compare your property with others similiar in size and character that are on the market or have sold recently. In effect, the local market determines the price. I hope this answers your question. It is very short but to the point.

Have a real estate question? Write, call, fax or e-mail:

Bob Jeffries, Realtor

Century 21 Birchwood Realty, Inc.

4040 Del Prado Blvd., Cape Coral, FL 33904

239-540-6659 Office

239-542-7760 Fax

bobjeffries4@juno.com