Those are some fairly complex questions. There are some FHA programs that might you might be able to use however, I would need a little more info from you with some more specific numbers on what you are looking to purchase. As far as the tax info is concerned, that is not a very accurate assessment as to the current market value of your home. Having a market analysis done by a realtor would help find the number your home will sell for in the current market.
If you would like to have a more in depth private conversation on this, please give me a call.
Your house is an investment. There is always risk associated with investments. They can fluctuate in value going up,down, or nowhere. Many people have seen their retirement accounts in the stock market shrink in value the same percentage as what you home's value has lost. However, at least your home provides a roof and protection from the elements during its down period while you wait for the next up cycle, which unfortunately could be some years. If you can remotely afford the payments, the bank is not likely to cut you a break by approving a short sale if you decide to sell. However, you should protest the tax with the assessor's office. Other than that, my advice is to enjoy the home and let the market do what its going to do... more