Help I'm a forced Landlord

[Phillip Cook]

Not sure what I should do. I currently have a property that I have  new tenants moving into on October 26. I don't even want this property. I've been forced into renting it out because I can't sell it to a non-investor. I just want to break even on it and I don't think I can even do that. If the property is vacant for more than a month I would have to walk away from it and let foreclose. l looked into short selling but I don't want to be responsible for the difference owed.

[Jon Holdman]

OK, it sounds like you have an underwater property that you're going to rent.  What's the rent and what's the P&I part of your mortgage payment?  Are you managing it yourself?

Often these situation come down to a choice between taking a big loss right now or taking a slow loss while you hold it.

Is this your residence?  If so, you may be able to avoid some of the taxes associated with a short sale.  Do you have assets you could use to make up the shortage?  If not, then you usually won't be on the hook for the shortage if the lender agrees to a short.  If you do, then the lender probably won't agree to the short any way.

But you say you have a tenant moving in. That's going to limit your ability to sell the place. Not impossible. Investors do buy occupied houses. But homeowners (owner occupants) do not. Investors are always going to pay less than a OO. So your maximum selling price will be generated by sprucing it up to get it move in ready and selling to an OO.