Need some advice...thinking about letting my property go to foreclosure.

[Phil James]

I purchased an investment property 3 years ago. At the time of purchase it appraised for 96k. Over the last three years I have been losing about 10k a year on the property. I recently had it reappraised and the appraisal came back at 48k. I currently owe 90k on the property. I am thinking about just letting it go to foreclosure. I spoke to an attorney and they said due to the difference in what it appraised for and what I owe, there is a good chance the bank could file a deficiency judgment against me after they sell it. I figure since I have been losing 10k a year on it… if the bank comes after me for 30k-40k I won’t be too far off from what I would have lost on it eventually. I have money in the bank to pay the mortgage, but I just feel like I am throwing it out the window and delaying the inevitable.

Every realtor I have spoken with said they never heard of a bank filing a deficiency judgment against anyone. Any feedback or advice on how some of you would handle this type of situation is appreciated. At this point I think I should just let it go.

thank you!