Hmm, why would you want to remodel something that has no value? It will be impossible to get a 2nd loan because nobody does 125% LTV loans. What I would do is keep your home how it is, or short sale it and rent a home that has some of the remodeled features you are looking for.... more
Every locality has a system in place for home owners to challenge their taxes. There is generally a short designated period of time to present your case. Contact your area tax department and find out the specifics and then build your case by examining the local tax records to identify information that supports your position.