We are in considerable debt, our home equity loan is $200,000, mortgage 133,000 and over $40,000 in credit card debt. I don't know how we got here, but it is time to make a decision.

We can sell our house somewhere between 400,000 and 500,000 and pay off all the debt we owe. We are looking to move to a cheaper area with a lot less taxes, and not have to send the kids to private schools.

My problem is we need to fix up the house and the realtor suggested around 5-10 thousand dollars of fix-ups (which it really needs) before selling. We don't have the cash flow to make this happen or the down payment for a new house, until this house is sold. I am a wreck.

Any suggestions would be appreciated.

What is the 5-10K for? is that material costs, or does that include labor? What are the items recommended? Are they structural, or just visual? Can you do all or part of the work yourself, or incorporate friends or trades? Would you be able to discount the price, or build in an "allowance" in the sales price for the buyer to have the work done? If the buyer is a handy sort, this could be a nice area for bargaining.

What is the value of the house? Your range is a 25% swing...quite a difference. How active is the market in your area? Is the eager Realtor interested in investing in the repairs so (s)he can sell the house for more $$$? Maybe you could work out a split of profits for the increased value?

When you move to the new area, you might consider renting for while as you get to know the town.

I think that if the improvements are visual then you can negotiate that with the buyer. If it takes 10k to fix everything just knock off 15K-20k from the price. 400k-500k is a wide range. Try to figure out for how much you can sell it and decide for how much you are willing to sell it. Negotiate.

I agree with Dru, when you move rent for a while before you buy. Too many people rush to buy a home mistaking it for a huge asset and get stuck in a similar situation as yours.

One thing to keep in mind in order to avoid financial problems is that when you decide to buy a liability make sure that your assets cover that liability.

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It is not smart to play it safe but it is safe to play it smart.

Thanks for the input. I am having people come over to give us estimates. There are a few items that need to be fixed that I can't do, I have just been putting them off; leaky faucets, holes in the wall, railings broken.

I realized, we can do the painting ourselves, so that will be a big chunk. There are a few items visually that the realtor suggested. The market in our area is slowing down, so to sell the house quickly and maximizing profit, a couple of thousand seems like a smart idea.

Although renting seems like a good idea moving twice does not appeal to me! We'd have to pay for two moves, which doesn't sound economical. I am hoping we can close on the house, then rent it back from the new owners for a month or two.

So I guess my main question, after sleeping on it; is if the equity line does not come through, is there another way to get a downpayment for the new house?

I would look to friends and family.

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Anyone looking of a credit counseling company?

I have to disagree with juan20. Family and friends are the worst place to seek a loan. If you seek a loan from a friend or family member and if something goes wrong, and the chance will always be there if you have to rely on a loan in the first place, then you risk to loose that relaitonship. It has happened so many times and I would recommend that you wipe that option off the table very very fast.

Family and friends are the worst place to seek a loan. Look at it this way:

A bank is a bank, don't seek investment advice from your bank. Use the bank for what it is intended to which is to open a checking/saving account.

Friends and family are no financial instituion so don't seek a loan from them. They are your freinds and it is your family. Enjoy that and don't risk that relationship becasue you decide to 'transform' them into your financial institution.

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It is not smart to play it safe but it is safe to play it smart.

I agree with Hermes. Friends/family is the worst place to look for a loan.

If you do go down that road, however, make sure that everything is IN WRITING. There should be a note drawn up, interest arrangements made, etc. This way, there is no confusion about when payments are due and what consequences are involved if payments are not made.

Relationships are more important than money, so don't risk something that is irreplaceable for something that is.