It's good that you are thinking about investing in your future. You may be able to carry a second home if you're income permits it. The only way the lender will allow it though is if you purchase a bigger home than your current home and like the other agent said if you can afford both mortgages. Interest rates are still at historic lows so if you are thinking of buying I think you should do it.
In regards to your question, you may be able to negotiate with your lender to get you a lower interest rate. Rates are down to 5% and your lender should be willing to negotiate once you contact them. The process should take approximately 6 weeks. The home in AZ may jeopardize your other home in Oregon because you refinanced and cashed out. I know several professionals in the AZ area that may be able to assist you with a short sale if you are interested in it. Please email me at email@example.com as time is of the essence. Foreclosure should be the last resort after all options have been tried.
We are continually seeing home values declining because people are losing their homes more and more. If you like where you live, there are options to save your home. Right now the government is playing a big part to help people save their homes but homeowners are not calling their lenders to participate. If you have any questions feel free to write a question or email me anytime. Thanks.
The way to get the info updated at the county tax roll level is to record the new square footage. One problem though, remember when the assessor assesses your home they are going through public records and if you record the bigger square footage you will be paying more in taxes. Bigger square footage means higher assessed value. :)
The values are just not there anymore to support a price of $452k. It is now listed at a reasonable price of $410k. The market value in that area for that size home is roughly $390-400k.
That home is now worth around $220,000 as of 2/23/08
The home just foreclosed at auction on 2/14.